Basics of Investment Banking (2215.YR.014625.1)

General information

Type:	OPT	Curs:	2,3,4	Period:	S semester
ECTS Credits:	4 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Year 2	Lluis Mateo Dilme	Economía, Finanzas y Contabilidad	ENG

Group	Teacher	Department	Language
Year 3	Lluis Mateo Dilme	Economía, Finanzas y Contabilidad	ENG

Group	Teacher	Department	Language
Year 4	Lluis Mateo Dilme	Economía, Finanzas y Contabilidad	ENG

Participants need to be familiar with concepts covered in the Corporate Finance course, and specifically the following firm valuation methodologies: Discounted Cash Flow and Multiples-driven Valuation.

Basics of Investment Banking provides a practical vision to the valuation methodologies previously learnt by participants. The main objective of the course is to learn how to apply such valuation methods to the two most important transaction structures: mergers and acquisition ("M&A?) and capital market transactions.
At the end of Basics of Investment Banking course, participants should be able to:
- Have a deeper understanding of the two most widely used company valuation techniques: Discounted cash flow and Multiples-driven.
- Understand the application of corporate finance concepts to specific corporate transactions.
- Measure value creation arising from both the assets and liabilities sides of the balance sheet, and the existing relationship between returns and risks.
- Be familiar with the role and main areas within the investment banking division of a financial institution.
- Understand the process of M&A and capital market transactions, and the role an investment bank performs.
- Demonstrate good working knowledge of the necessary tools and practices to be implemented in an investment banking engagement.

1. Quick overview of the DCF and Multiples-driven valuation methodologies

2. Main investment banking activities

3. Application of valuation methods in M&A: Merger plan

4. Application of valuation methods in Capital Markets: Initial public offering

Basics of investment banking is notably practical, as most of the concepts have previously been covered in previous courses.
The format of the course is based on a mix of pre-readings, lectures and case studies.
Pre-readings will be selected for participants to be read in advance, with the objective to quickly cover in class the necessary framework and concepts.
Lectures: to present and discuss frameworks and concepts.
Case studies will provide a practical view of the concepts presented in class. These will be presented for participants to take their own decisions (investments, capital allocation, deal structure?) and be defended and discussed in class.

- Brealey, Myers y Marcus. "Principles of Corporate Finance?. Mc Graw-Hill.
- Copeland Keller and Murrain. "Valuation: Measuring and Managing the Value of Companies?. Wiley.
- Damodaran. "Damodaran on Valuation?. Wiley.
- Joshua Rosembaum and Joshua Pearl. "Investment Banking Valuation, Leveraged Buyouts and Mergers & Acquisitions?. Wiley.

Group	Teacher	Department
Year 2	Lluis Mateo Dilme	Economía, Finanzas y Contabilidad

Group	Teacher	Department
Year 3	Lluis Mateo Dilme	Economía, Finanzas y Contabilidad

Group	Teacher	Department
Year 4	Lluis Mateo Dilme	Economía, Finanzas y Contabilidad