M8: Corporate Finance

General Information

Module Code W.MSCBF_CF04.13_EN

Programme Master of Science / Banking and Finance
Type of Module Core module in focus programme
Level of Module Specialisation
ECTS Credits / Workload 6 ECTS Credits (180 hours)

Module Dependencies

Pre-requisites The students have knowledge in

- methods of corporate valuation
- econometrics (first year in MSc) in order to read and understand academic articles
Follow-up modules

Module Aims
The module corporate finance focuses on various aspects of funding companies. Among the topics are financing start-ups and
business ideas (venture capital) as well as company succession. Additionally the module focuses on mergers and acquisitions;
funding and risk management of international corporations; restructuring and real estate investment banking.

Submodule 1: Advanced Corporate Finance

Submodule code ACF
ECTS Credits / Workload 2 ECTS Credits (60 hours)

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Learning Outcome 1

The submodule "Advanced Corporate Finance: Theory and Practice” uses the tools learnt in earlier courses to study a range of
problems in corporate finance. In particular, the following topics will be addressed:
1. Capital Structure Decisions and Dividend Policy
2. Performance Measurement and Compensation
3. Prevention, Early Diagnosis and Management of Downturn & Crisis
4. Turnaround Management & Restructuring
5. Advanced Capital Budgeting
6. Asymmetric Information

Importance Relevant NQF-Descriptors

Subject knowledge and skills: The students are able to apply the learnt concepts to complex high knowledge; application; judgement
problems of corporate finance.
Methodology: The students are able to - Apply the taught contexts to complex corporate finance medium application; judgement
questions - Carry out studies such as presented in the journal articles

Content Outline
Block 1
⦁ Optimal Capital Structure and Dividend Policy

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Block 2
⦁ Performance Measurement and Compensation

Block 3
⦁ Prevention, Early Diagnosis and Management of Downturn & Crisis

Block 4
⦁ Turnaround Management & Restructuring

Block 5
⦁ Advanced Capital Budgeting

Block 6
Asymmetric Information

Teaching and Learning Methods

Contact Hours seminar; exercises; lecture; group work

Directed Study individual work

Workload

Contact Hours 24 lessons / 18 hours (30%)

Directed Study 40 lessons / 30 hours (50%)
Private Study 12 hours (20%)

Assignments and Assessments

Assessment Type Quantity Weight Form Evaluation Type Time
Written examination 60 minutes 83% closed book grades during exam weeks
Oral group assignment 17% presentation grades during semester

Submodule 2: Family Business Finance

Submodule code FBF
ECTS Credits / Workload 2 ECTS Credits (60 hours)

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Learning Outcome 1

The course Family Business Finance is concerned with the efficient and effective management of the finances of family owned 
companies in order to achieve the objectives of the owners. The course highlights the specific aspects of family businesses in 
comparison to public corporations. Those include the process of transgenerational value creation, the succession process, the
financial and nonfinancial performance of family business, and the strategies for sustaining family business performance. The
course contributes to prepare students to take future responsibilities within family firms or to work for family firms within
financial institutions and consulting companies.

Importance Relevant NQF-Descriptors

Content Outline

Session 1. Introduction to Family Business 
⦁ Course description
⦁ Family business definition and diffusion 
⦁ Circle models 

Session 2. Family Business Performance 
⦁ Types of performance in family firms 
⦁ Theoretical perspectives on family business performance 
⦁ Empirical evidence 

Session 3. Family Business Governance  
⦁ Governance problems in family firms 

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 ⦁ Corporate, ownership, family and wealth governance 
⦁ Family business governance bodies and documents 

Session 4. Competitive Strategies in Family Business 
⦁ Strategic processes in family firms 
⦁ Portfolio strategies in family business 
⦁ Business strategies in family firms  

Session 5. Financial Strategies in Family Business 
⦁ Family Equity  
⦁ The cost of capital in family business 
⦁ Dividends, Investments and Leverage in family firms 

Session 6. Organizational Issues in Family Business 
⦁ Work and leadership in family business 
⦁ The family in business 
⦁ Relationships and conflicts in family firms 

Session 7. Succession in Family Business 
⦁ Succession options  
⦁ The phases of a succession process 
⦁ Coping with succession complexity 

Session 8. Change, Innovation and Transgenerational Value Creation 
⦁ Family business change 
⦁ Innovation in family firms 
⦁ The elements and process of TVC 

Teaching and Learning Methods

Contact Hours exercises; lecture; presentations

Directed Study individual work; group work

Workload

Contact Hours 24 lessons / 18 hours (30%)

Directed Study 20 lessons / 15 hours (25%)
Private Study 27 hours (45%)

Assignments and Assessments

Assessment Type Quantity Weight Form Evaluation Type Time
Written examination 60 minutes 60% closed book grades during exam weeks
Written group assignment 40% grades during semester

Submodule 4: Mergers & Acquisitions

Submodule code MA0
ECTS Credits / Workload 2 ECTS Credits (60 hours)

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Learning Outcome 1

Company mergers and acquisitions (M&A transactions) are frequently taking place. They can both create and destroy substantial
value. Therefore, it is important to know the basic elements of a successful company acquisitions. The module deals (after a solid
introduction) with the acquisition of companies from the point of view of the buying party. Moreover, a case study / simulation
provides insights into an M&A process.

Importance Relevant NQF-Descriptors

Subject knowledge and skills: The students i) know how to assess the opportunities and risks of a high knowledge; application; judgement
transaction on the basis of its form; ii) are able to assess transactions that take place in practice; iii)
are able to include points to be specifically examined in a takeover in a due diligence; iv) evaluate
possible takeover objects and include the price in the market conditions; v) calculate the influence
of a takeover on their own balance sheet, income statement and cash flow statement; vi)

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implement the findings from the due diligence and the valuation in a purchase agreement
Methodology: Students i) can independently analyse which forms of M&A transactions are used medium application; judgement
in practice; ii) calculate the main consequences of an acquisition on the basis of a balance sheet /
profit and loss account of the object to be acquired

Content Outline
Block 1 – Introduction: Dr. Manuel Bauer
⦁ Introduction
⦁ Key reasons and types of M&A
⦁ Private Equity as a key M&A participant
⦁ Prominent M&A cases – Selected case studies
⦁ M&A successes and failures
⦁ M&A process overview

Block 2 – M&A Process: Dr. Manuel Bauer

⦁ Screening and sourcing
⦁ Due diligence
⦁ Acquisition financing
⦁ Share and purchase agreements and other transactional documents
⦁ Merger control considerations
⦁ Case Study introduction

Block 3 – Case Study: Dr. Manuel Bauer / Dr. Christoph Duss

⦁ Case Study

Block 4 – Case Study: Dr. Manuel Bauer / Dr. Christoph Duss

⦁ Case Study

Block 5 – Case Study: Dr. Manuel Bauer / Dr. Christoph Duss

⦁ Case Study

Block 6 – Case Study: Dr. Manuel Bauer / Dr. Christoph Duss

Case Study

Teaching and Learning Methods

Contact Hours exercises; lecture; presentations; group work

Directed Study group work

Workload

Contact Hours 20 lessons / 15 hours (25%)

Directed Study 53 lessons / 39.75 hours (66.3%)
Private Study 5.25 hours (8.8%)

Assignments and Assessments

Assessment Type Quantity Weight Form Evaluation Type Time
Oral group examination 67% case study grades during semester
Written examination 60 minutes 33% closed book grades during exam weeks

Submodule 5: Corporate Financial Management for MNEs

Submodule code FRM
ECTS Credits / Workload 2 ECTS Credits (60 hours)

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Learning Outcome 1

Explore the interdependence between the globalisation process and large multinational companies. Analyse and assess the funding
possibilities of large multinational corporations. Get familiar with the various markets and their products, especially FX and FI, as
well as the strategies that support the funding of large multinational corporations. Review the financial risks emanating from the
funding of large multinational corporations and study how they can be analysed, managed and hedged. Evaluate investment

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analysis and working capital management in an international context. Understand the importance of the institutional, tax and
regulatory framework. The course allocates a significant amount of time to case studies and practical exercises. Students are
expected to review the theory on their own. All communication is in English.

Importance Relevant NQF-Descriptors

Subject knowledge and skills: Students are able to i) evaluate the pros and cons of specific high knowledge; application; judgement
funding ii) strategies iii) connect the dots between national politics, macroeconomics, the
institutional and regulatory framework, financial markets, international portfolio investors and the
funding and risk management of international corporations iv) assess the factors driving the
funding of international corporations and the motivation of the various market players (including
international portfolio investors and governments)
Methodology: Students are able to i) critically reflect work and thought processes and ii) develop medium judgement; communication; learning
possible courses of action iii) share their knowledge and insights with others on a friendly and autonomy
convincing manner iv) learn and work independently, recognize gaps in their knowledge and fill
these gaps independently

Content Outline
Session 1, Multinational Corporations, International Corporate Finance, Macro Economics and
Globalisation, Prof. Dr. Martin Spillmann
⦁ The context of modern globalization
⦁ Global business models - a Case Study
⦁ The International Monetary System (IMS)
⦁ Balance of Payments (BOP)

Session 2, Foreign Exchange Theory and Markets, Financial Risk Management, Prof. Dr. Thomas Birrer
⦁ Foreign Exchange Market and Products
⦁ Transaction and Translation Exposure
⦁ Operating Exposure
⦁ Motivation for Hedging
⦁ Foreign Currency Derivatives and Swaps

Session 3, International Trade Finance, Multinational Tax Management, Dr. Roland Pfister
⦁ Financing International Trade and Minimising Performance and Credit Risk
⦁ Tax Principles
⦁ Transfer Pricing
⦁ Tax-Haven Subsidiaries and Offshore Financial Centres

Session 4, MNE Funding & Liquidity, Prof. Dr. Martin Spillmann

⦁ Understand and model liquidity risk
⦁ Manage liquidity risk
⦁ The importance of debt
⦁ Raise debt and equity for MNEs
⦁ Corporate governance aspects

Session 5, MNE Corporate Actions, Dr. Manuel Bauer

⦁ What are corporate actions
⦁ Stakeholder analysis, objectives
⦁ Project management
⦁ Case studies

Session 6, The role of the CFO / Case study real estate, Prof. Dr. Martin Spillmann & Dr. Christian Kraft)
⦁ Corporate Controllership
⦁ Corporate Treasury
⦁ Economic strategy and forecasting
⦁ Main current risks and issues
⦁ Case study real estate controlling
⦁ Case study real estate funding
⦁ Q&A with a CFO

Teaching and Learning Methods

Contact Hours lecture; presentations; group work

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Directed Study individual work

Workload

Contact Hours 24 lessons / 18 hours (30%)

Directed Study 20 lessons / 15 hours (25%)
Private Study 27 hours (45%)

Assignments and Assessments

Assessment Type Quantity Weight Form Evaluation Type Time
Written examination 60 minutes 100% closed book grades during exam weeks

Submodule 6: Real Estate Investment Banking

Submodule code IBA
ECTS Credits / Workload 2 ECTS Credits (60 hours)

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Learning Outcome 1

The module focuses on current issues in Real Estate Investment Banking and Real Estate Corporate Finance. The aim of
the lectures is to get a profound knowledge in current issues and trends in the industry, to critically analyse and discuss success
stories and to learn and to apply methods in real estate related investment banking and corporate finance. The lectures are likely to
be taught as a three day course abroad.

Importance Relevant NQF-Descriptors

Subject knowledge and skills: Students know the main topics and facts within the industry and can medium
apply their knowledge independently.
Problem-solving: Students analyse real estate companies critically and solve real estate related high
problems independently. They are aware of their knowledge and know limits and risks.
Methodology: Students know the following: - Understand the structure of real estate deals and medium
M&A - Know main methods and processes within the M&A industry - Discuss case studies
critically
Communication: Students communicate in a clear, critical and structured way with highest respect medium
of different opinions and statements
Social skills: Students interact with respect and are able to discuss in an appropriate way. medium
Self-related skills: Students organize their work efficiently and effectively. medium

Content Outline
The lectures cover an international perspective of the real estate investment banking and corporate finance industry. Therefore, the
lectures take place during a three day course abroad in one of the financial centers in Europe. Please see the separate program for
further details.

The lectures cover eg:

- Current trends and issues in M&A in the real estate industry

- Real estate investment banking
- Real estate corporate finance
- Best practices and case studies
- Transactions of real estat companies
- IPOs in the real estate industry

Limited number of places, priority is given to MScRE-students.

Teaching and Learning Methods

Contact Hours exercises; lecture; presentations; discussion; field trip; case studies; guest lectures
Directed Study group work; field trip

Workload

Contact Hours 24 lessons / 18 hours (30%)

Directed Study 20 lessons / 15 hours (25%)

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Private Study 27 hours (45%)

Assignments and Assessments

Assessment Type Quantity Weight Form Evaluation Type Time
Oral group examination 15 minutes 50% presentation grades during semester
Written examination 45 minutes 50% closed book grades during exam weeks

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