The course deal with the main financial problems that affect the small and medium enterprises, particularly for the capital rationing difficulties they must confront in growing processes (being them quantitative or qualitative). Such a capital rationing is partly due to the specific risk profile that affect these particular corporations (i.e. payoff risk) and partly due to the disclosure processes that characterize the SME in financial communication processes (i.e. information risk).
Dealing growing finance transaction in a correct way requires as first to clarity the final aim and scope of corporate activity and its targets. From that point the feasibility study must be conducted in a ?flash-back-approach? (i.e. from future to present); thus, a very different technique from the typical financial planning activities that move from present corporate conditions to project them in the future (i.e. forward-looking-approach).
A key aspect of finance for corporate growth is the deep analysis of return expectations and risk embedded into them, in order to access the actual opportunities and capabilities that the corporation can access to manage corporate risks, developing excess returns and keep a strong competitive advantage in the long run. To access this goal, the course focuses over a set of tools to carry on financial analysis and to support managerial decisions, particularly those affecting the capital structure such as: the debt-to-equity ratio; the debt maturity; all the non-equity agreements and covenants supporting the financial transaction and reducing information asymmetries; the legal and tax profile of the specific funding transaction; the capital allowances analysis.