STRATEGIC FINANCE

The course forms part of the broader objective of mastering the various managerial, economic, and financial evaluation aspects related to a company and an investment project. Its purpose is to provide practical tools for addressing corporate valuation issues and to foster an understanding of the underlying dynamics of investment transactions. Particular attention is devoted to valuation methodologies from a financial perspective, highlighting the available choices in light of the two key dimensions of risk and return. Throughout the course, the main valuation methods, synergy assessment, the stages of a deal, and the distinctive features of Due Diligence processes will be examined. The course will also be enriched by practical insights and contributions from consultants working with multinational companies.

Attendance and active participation in the three training activities proposed by the course (lectures, thematic seminars, multidisciplinary laboratory) and individual study will allow students to:
1. Knowledge and understanding
1.1. acquire the main analytical and synthetic valuation methods relating to an investment and a business complex.

2. Ability to apply knowledge and understanding
2.1. knowing how to exemplify the different methods, understanding what differences in results they can lead to
2.2. know what the purpose of a Due Diligence process is and how it can support company valuations

3. Judgment skills
3.1. know how to determine the most appropriate method for evaluating an investment or a company

Knowledge of financial mathematics formulas relating to the discounting of flows and annuities
Knowledge of the financial statements and their reclassification according to the management criteria

1. Investment decisions for the indebted company: methods of evaluating investment projects and the cost of capital

2. From the value of investments to business value (I): DCF methods for business valuation

3. From the value of investments to the value of the company (II): the stock market multiples method

4. External growth: the evaluation in the hypothesis of integration operations

5. Due Diligence as a support to the acquisition operations

F. Beltrame, G.S. Bertinetti, A. Sclip: Analisi e valutazione finanziaria d’impresa, G. Giappichelli Ed., 2021

Verification of learning takes place through a written test. The written test consists of exercises with the aim of ascertaining the skills acquired in solving company valuation problems and notions on Due Diligence. During the written test it is not allowed to use books, notes, electronic media with the exception of a calculator

written

The instructor is responsible for ensuring the authenticity and originality of all examinations and coursework. In cases of suspected academic misconduct, an additional on-site assessment may be required during the exams, which may differ from the standard format.

The grades of the written test are divided into three sections of the task: multiple choice questions, exercises, theoretical questions
A. Scores in the 18–22 range will be awarded given:
- sufficient knowledge and applied understanding regarding the syllabus;
- limited ability to gather and/or interpret data and form independent judgments;
- sufficient communication skills, particularly regarding the use of specialized terminology related to the economic functioning of public services;
B. Scores in the 23–26 range will be awarded given:
- fair knowledge and applied understanding regarding the syllabus;
- fair ability to gather and/or interpret data and form independent judgments;
- fair communication skills, particularly regarding the use of specialized terminology related to the economic functioning of public services;
C. Scores in the 27–30 range will be awarded given:
- good or excellent knowledge and applied understanding regarding the syllabus;
- good or excellent ability to gather and/or interpret data and form independent judgments;
- fully appropriate communication skills, particularly regarding the use of specialized terminology related to the economic functioning of public services.

Students, in addition to the text, will be able to use the material that is distributed during the lessons, which is accompanied by practical examples.
In addition, one lesson a week is dedicated to doing exercises and practical cases.

This subject deals with topics related to the macro-area "Cities, infrastructure and social capital" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development