This course covers the financing and formation process of private companies from product concept and angel investors to the Initial Public Offering. Exit strategies for private investments are discussed, including IPOs, mergers and acquisitions. Strategic and financial buyers play a key role in the valuation of a newly public or recently acquired firm. All of the players are discussed, including venture capitalists, entrepreneurs, investment bankers, attorneys, public shareholders, merger partners, institutional investors and private equity/buyout firms. Students will discuss business models; construct staffing and compensation schemes; practice valuation analysis; compare and contrast alternative financial sources; structure business plans; review the types of securities to offer; examine private placement processes; analyze negotiation strategies; and review the implications of financing terms and the role of venture capital and private equity investment in institutional portfolios. The challenges of completing mergers and integrating merged companies are also discussed. Sarbanes-Oxley, anti-trust requirements and other regulatory issues will be presented.
[(MSF 504, MSF 505, and MSF 506)]