In summer semester 22/23 compact course will be taught face to face, June 7-8, 2023, 9-12h and 14-17h, IES building, room 314 and will be finalised by online test during next week.

Three use cases

Learn how investment professionals approach PE/VC investments,
You can apply the learnings to “entrepreneurship via acquisition”, and
The topics covered apply to broader corporate strategy

Lecture 1: What is Private Equity (and Venture Capital)?

Some historical perspective (or what do Crusades have to do with any of this?)
How do PE/VC funds work
Lifecycle of a fund: Institutional fundraising / asset management
VC vs. PE; What is a “Family Office”, a “Search Fund”

Lecture 2: Investment strategies & opportunity screening

How do PE firms make money?
How is VC different from PE?
PE Investment strategies and Investment criteria
Auctions vs. proprietary sourcing

Lecture 3: Role of Debt

Debt capacity (how much debt can you raise?) and leverage ratios
Cost of debt (hint: not just the interest you pay)
Alternative sources of debt – an overview
Capitalization table & liquidation preference

Lecture 4: Valuation in PE/VC Context

Price vs. Value
Value to who? Stakeholders’ perspective
Overview of basic valuation techniques: pro’s and con’s
Difference between PE and VC approach to valuation

Lecture 5: Acquisition Process

From the first contact to a Deal
Key parties to the table
Difference between an auction and negotiated transaction
Due diligence

Lecture 6: Acquisition Agreement

Transaction structure: What do you buy (assets or shares) and how do you pay (cash or shares) and how much (fixed price vs formulae)
Buying whole business vs control vs minority stake (PE vs VC)
Deal protection: Representation & Warranties and Remedies (Baskets, de minimis, caps)
Conditions precedent & Closing

Lecture 7: Monitoring & Exiting investments

Monitoring: Management vs. Board roles
Monitoring: The Good, the Bad and the Ugly
Timing the exit: determinants
Ways to exit: Trade sale, secondary LBO, IPO, Recap

Panel with Industry Practitioners

Speakers to be announced