ADVANCED CORPORATE FINANCE
Corporate Finance (advanced) course focuses on the operational assessment and decision-making aspects that lead finance office to Financial Plan definition, to achieve finance sources for business development.
The course aims to provide skills necessary for preparation and management of financial plan, from the perspective of a financial management operator and that of a business consultant, paying attention to recent evolution in financing model of italian SME's. Great attention will be paid on bank-business relationship in its recent evolution and to the choice of financial instruments to implement financial plan.
AIMS AND LEARNING OUTCOMES
The course aims to provide the skills necessary for preparation and management of financial plan, from the perspective of a financial management operator and that of a business consultant, paying attention to recent evolution in financing model of italian SME's.
Defining the financial plan - reference framework
The connection with the company strategy, the definition of the needs to be financed. The financial plan as a feed back of the strategy
Construction and dynamic management of the financial plan:
- the financial forecasting
- identification of coverage solutions
- verification of the feasibility of coverage solutions.
- the choice of financial instruments
The financial plan - financial needs and coverage solutions
Financial forecast. Employments, existing sources and gap to be filled, qualitative and quantitative.
Forecasting tools, short term and long term
Strategic criteria and evaluations for the definition of the financial structure. Balance between shareholders value and the preservation of the financial equilibrium. Off balance - sheet assets in SMEs.
Fixed assets and financial investments
Solutions to hedge the growht of fixed assets. Rental vs purchase, solving financing problems. The fiscal questions in development financing decisions.
Risk management of trade receivables.
Solutions to hedge the development of working working capital. Calculations of convenience
The solution of the problem of liquidity reserves managing of the net financial position in the short term. The management of liquidity stocks
The financial plan - Credit capacity assessment
The assessment of credit capacity - generality.
The guarantees, role and types. Personal and intragroup guarantees. Real warranties. External guarantees (National Guarantee Fund and Confidi)
Financial instruments in risk capital, from intermediaries and on the financial market
The stock market listing. IPO. Capital increases on the market.
Private equity - types of operations and types of operators. Venture capital, development capital. Feasibility conditions and convenience calculations for the company
Financial instruments in debt capital, on the financial market and as intermediaries
Financial instruments on the market: issuance of bonds on the market, issuance of commercial papers / financial bills.
Mini-bonds as a chance, for SME's. Feasibility conditions and need for support tools
Financial instruments from intermediaries
Short-term credit facilities
Medium and long term financial instruments. Mortgage loans, unsecured loans to m.l.t. and leasing. Mortgage - lease convenience calculations.
The choice of financing logic
Financing of the firm itself
Securitization of assets. The tranching of risk.
Leveraged buy outs
The bank - company relationship. Evolution and recent problems
The recent evolution of the banking system; the effects of Basel 2, Basel 3 and Unione Banking on how to manage credit. The crisis and the restrictive evolution of supervisory policies.
Rating system drivers.
Evolution needed in SME's financial behavior. New relational aspects. New choices in financial structure.
Towards a new model of financing the development of SMEs in Italy. The signals to be grasped and the development needs of the corporate financial culture.
Special section: Risk management of financial risks
Exchange rate risk: company policies, valuation and hedging techniques with the use of derivative instruments.
Interest rate risk: management policies and hedging derivatives
Risk of changes in the prices of raw materials: quoted raw materials and head-ing instruments
For students attending lessons : lecture notes and support materials
Additional information for non-attending students:
Textbook : BREALEY MYERS SANDRI, Principles of Corporate Finance - 7th edition, MCGRAW HILL 2015 - chapters 11-14-15-16-17-18-19-20-21-22-27-28-30-31
Ricevimento: Thursday 15,30 to 16,30
PAOLO PARINI (President)
The first day useful as per the educational calendar
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