Strategies to increase the value of a company

Group	Teacher	Department	Language
Year 3	Ramon Palacín Antor	Economía, Finanzas y Contabilidad	ENG

Group	Teacher	Department	Language
Year 4	Ramon Palacín Antor	Economía, Finanzas y Contabilidad	ENG

Course Learning Objectives

Designing and implementing strategies that increase the value of a company is an essential area for managers, it requires mastering a wide range of knowledge and skills.

This course is designed to give participants an introduction to the different components in the value creation in the companies and how these components are interrelated between them.

At the end of the course the student will be able to understand the key factors in value creation through very practical cases with a financial focus. During the course, study cases will be presented in which, thanks to the design and implementation of appropriate strategies, the company's value increases sustantially. In addition, some real cases in which the teacher has participated will be explained and guest speakers will also present real cases of value generation.

This course provides the student with tools to measure the value creation of different strategies taking into account both the income statement and the balance sheet. Furthermore, these tools can help to not only to design these strategies, but also to implement them in an effective way.

Thanks to this course, participants will obtain an efficient way of making decisions that will allow them to succeed in business management. This can mean a very positive leap in their professional career.

This course will address the following aspects of value creation:
- How to design a strategy that increases the value of a company
- How to measure the value created by a strategy.
- How to find out hidden sources of value creation in all the company areas.
- Correlated and uncorrelated factors to take into consideration.
- Why financial decisions are a relevant dimension to consider.
- What are the main strategies to maximize the income statement.
- What are the main strategies to minimize the balance sheet.
- What are the main strategies to maximize the strategic factor.
- Why is essential to take into account the effect of each strategy in both the income statement and the balance sheet.
- How different options for growth have different requirements and different risk profiles.
- Why free cash flow is a key indicator.
- Why intangible assets are so important.
- How to use corporate strategies (acquisitions, divestitures, etc.) to create value.
- How to manage different scenarios.
- Why the implementation of the strategy is so important.
- What we can learn from private equity firms.
- How to improve the value creation drivers.
- Decision-process potential mistakes and how to avoid them.

Methodology

In order to achieve the objective of the course, the format of it is going to be based on case studies and class discussions.

Case Studies. The case study method is one of the most effective pedagogical tools to improve student analytical and decision-making skills, as it requires students to be an active participant in making value creation decisions. Cases studies intend to give students practice in assembling data, supporting and discussing decisions. Moreover, the case method provides a vehicle by which to apply theories, concepts, and frameworks that we discuss in class or which students find in the assigned readings. Finally, the discussion constitutes an opportunity to defend one's ideas and to learn from others, by listening to their ideas and comments. Classrooms are our training environments to prepare you for business challenges.

Class discussions. The class discussions are devoted to presentation and discussion of frameworks, concepts and theories that are useful for value creation practice. In general, these class discussions are mixed with case study analysis.
During these class discussions I am going to introduce some theoretical concepts and encourage student participation. However, I do expect that students debate some of the ideas and contribute with their experiences. I also expect from students that they read the assigned material prior to class, as this accelerates the pace of the session and make discussions richer. Guest speakers might also be invited to these sessions.
This is an interactive course, so I encourage student's active participation, sharing their experience with the group will enrich all the participants and make the sessions more dynamic.

Class participation is a way to make the classes more interactive in order to help students to learn more and in an easy way.

Bibliography

- BUFFETT, Mary and CLARK, David: Warren Buffett and the interpretation of financial statements. The search for the company with a durable competitive advantage, Simons & Schuster, 2011
- COLLINS, Jim: Good to great, why some companies make the leap? and others don't, Random House Publishers, 2001.
- COPELAND, Tom, KOLLER, Tim, GOEDHART, Marc and WESSELS, David: Valuation: measuring and managing the value of companies, Wiley, 2010.
- DAMODARAN, Aswath: Investment valuation. Tools and techniques for determining the value of any asset, Wiley, 2012.
- HBR'S 10 MUST READS: On making smart decisions, Harvard Business Publishing, 2013.
- KAHNEMAN, Daniel: Thinking, fast and slow, Macmillan, 2011.
- MAHAJAN, Gauta: Value creation, the definitive guide for business leaders, SAGE Publishing, 2016.
- PALACÍN, Ramon: De directivo a empresario vía Management Buyout. Guía para directivos que deseen adquirir una empresa, Profit Editorial, 2009.
- PALACÍN, Ramon: Creación de valor: 12 estrategias para duplicar el valor de una empresa en 4 años, Profit Editorial, 2021.
- RAPPAPORT, Alfred: Creating Shareholder Value, The Free Press, New York, 1986.
- RAPPAPORT, Alfred: Ten ways to create shareholder value, Harvard Business Review September 2006 issue.
- ROSENBAUM, Joshua and PEARL, Joshua: Investment Banking, Valuation, Leveraged Buyouts, and Mergers & Acquisitions, Wiley, 2009.
- SPETZLER, Carl, WINTER, Hannah and MEYER, Jennifer: Decision quality, value creation from better business decisions, Wiley, 2016.
- SUDARSANAM, Sudi: Creating Value from Mergers and Acquisitions, Pearson, 2010.

Timetable and sections

Group	Teacher	Department
Year 3	Ramon Palacín Antor	Economía, Finanzas y Contabilidad

Timetable Year 3

From 2024/2/13 to 2024/3/19:
Each Tuesday from 17:30 to 20:00. (Except: 2024/3/5)

From 2024/4/9 to 2024/5/7:
Each Tuesday from 17:30 to 20:00.

Group	Teacher	Department
Year 4	Ramon Palacín Antor	Economía, Finanzas y Contabilidad

Timetable Year 4

From 2024/2/13 to 2024/3/19:
Each Tuesday from 17:30 to 20:00. (Except: 2024/3/5)

From 2024/4/9 to 2024/5/7:
Each Tuesday from 17:30 to 20:00.

Type:	OPT	Curs:	3,4	Period:	S semester
ECTS Credits:	4 ECTS

Strategies to increase the value of a company (2235.YR.014607.1)

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