Unit BUSINESS VALUATION

Course
Business administration
Study-unit Code
20A00085
Location
PERUGIA
Curriculum
Accounting and consulting
Teacher
Andrea Cardoni
Teachers
  • Andrea Cardoni
Hours
  • 42 ore - Andrea Cardoni
CFU
6
Course Regulation
Coorte 2020
Offered
2021/22
Learning activities
Affine/integrativa
Area
Attività formative affini o integrative
Academic discipline
SECS-P/07
Type of study-unit
Obbligatorio (Required)
Type of learning activities
Attività formativa monodisciplinare
Language of instruction
Italian
Contents
The course provides the theoretical and technical knowledge for business valuation, with particular reference to the companies operating in the manufacturing and trade sectors. In the first part of the program all the quantitative and qualitative issues are analyzed, with the aim to assess the company strategic positioning and the financial fundamentals. The second part of the program is then devoted to present the theoretical logic and the applicative methodologies for assessing the enterprise and equity value. The aim is to provide students with the theoretical and practical methodology and tools aimed at developing a process for evaluating companies and their economic capital. The course aims to integrate the measurement of profitability and financial sustainability with the strategic vision of the company and its context in order to validate and organically assess the company value.
Reference texts
PART 1 - A. Cardoni, Strategia e Performance nel sistema d’impresa. Logiche e strumenti per l’analisi del successo aziendale, Giappichelli, Torino, 2016.
PART 2 – G. Paolucci, La valutazione d’azienda. Fondamenti concettuali e prassi applicative, Franco Angeli, Milano, 2011.
Altro materiale di supporto indicato dal docente e messo a disposizione nella piattaforma e-learning.
Other suggested readings:
Robert M. Grant - L'analisi strategica per le decisioni aziendali. Il Mulino. Bologna. 2016 – Capitoli 1, 2 (escluso par. 2), 3, 4, 5, 6.
“Il Sole 24 Ore” newspaper.
Educational objectives
In a general perspective the course aims to provide a methodology for business valuation, both considering the current performance of the company and its Equity value in special operation of merger, acquisition or transfer.
More specifically the learning outcomes are referred to the following:
- knowledge of the main concepts of business strategy;
- knowledge of the logical steps for the implementation of strategic analysis and business valuation;
- knowledge of business performance and value creation analysis in a strategic perspective;
- knowledge of analysis framework and tools for external environment, industry, competitors, resources, capabilities and business processes analysis;
- knowledge of the main characteristics and contexts to properly apply the business valuation methods;
- ability to apply the different logics and techniques of business valuation.
Prerequisites
In order to face the subjects described and the conceptual tools proposed with the necessary awareness, it is very important to have a good knowledge of business economics and principles of accounting.
Teaching methods
Face-to-face lectures, tasks, seminars, presentation and discussion of real cases.
Other information

Learning verification modality
In the ordinary conditions the exam consists of a written test performed by assigning three open questions on the topics including:
- a calculative task related to the performance analysis and business valuation methodologies and techniques;
- two theoretical questions will be referred to the conceptual and descriptive parts of the program.
The test is devoted to ascertain the knowledge level and the understanding capabilities acquired as well as to present and expose the theoretical subjects consistently with their frame and underpinning logic.
The duration of the test is one hour and half. The calculative task will account for 12 points on the total, whereas the two open questions account for 9 points each.
If the regulations provide some restrictions on face-to-face exams and the exam has to take place online, the written test can be partially replaced by the preparation of a project work to be discussed during the oral test, integrated by two open questions on the other parts of the program.
Extended program
PART 1. STRATEGY AND PERFORMANCE ANALYSIS
Strategy, performance and value. Strategic management and strategic analysis.
The strategic analysis in a qualitative perspective
The analysis of core perspectives and strategic objectives. The analysis of external environment. The analysis of internal environment.
The strategic analysis in a quantitative perspective
Financial statement, investments and financial structure
Financial method of classification. Operational method of classification. Analytical relevance of financial statement components in a strategic perspective. Income statement and economic performance. Value added method of classification and margins. Functional method of classification and margin. Fixed costs and variable costs method of classification and margin. Cash flow statement and financial analysis. Profitability, financial sustainability and economic value added analysis

PART 2. ENTERPRISE VALUE AND VALUATION METHODOLOGIES FOR CORPORATE FINANCE
Contexts and logics of business valuation. The perspective of M&A (merger and acquisitions) and corporate finance. Principles and methodologies for business valuation. Methods based on current value of assets and liabilities (including intangible assets). Methods based on expected earnings. Methods based on discounted cash flows. Combined methods. Empirical methods. Multiples. Business valuation standards. Business valuation report.
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