Advanced Corporate Finance Ugent

Advanced Corporate Finance at Ghent University (UGent) delves into the intricate financial decisions corporations face in a dynamic global market. Going beyond introductory concepts, the course aims to equip students with the analytical tools and critical thinking skills necessary to tackle complex real-world scenarios.

A core focus lies on valuation. Students explore advanced valuation methodologies, moving beyond discounted cash flow analysis to incorporate real options, contingent claims analysis, and relative valuation techniques. Emphasis is placed on understanding the assumptions underlying each method and their limitations, allowing students to select the most appropriate approach for different situations. Special attention is given to valuing companies in specific contexts, such as mergers and acquisitions, restructuring, and initial public offerings.

The course also delves into capital structure decisions, exploring the trade-offs between debt and equity financing. Students analyze the impact of capital structure on firm value, considering factors like agency costs, information asymmetry, and taxes. Advanced topics include optimal capital structure theory, the pecking order theory, and the market timing hypothesis. Practical case studies and simulations are used to demonstrate how different capital structure choices impact firm performance.

Another crucial area covered is corporate governance. The course examines the mechanisms used to align the interests of managers and shareholders, including board structures, executive compensation, and shareholder activism. Ethical considerations in corporate finance are also explored, emphasizing the importance of responsible financial decision-making. The implications of corporate governance failures and scandals are discussed, highlighting the importance of effective oversight and accountability.

Mergers and Acquisitions (M&A) form a significant component of the curriculum. Students learn how to evaluate potential M&A targets, structure deals, and integrate acquired companies. Topics covered include merger motivations, valuation synergies, deal financing, and post-merger integration challenges. Students analyze real-world M&A transactions, developing the skills needed to advise companies on M&A strategy.

Furthermore, the course addresses the growing importance of risk management in corporate finance. Students learn how to identify, measure, and manage various financial risks, including market risk, credit risk, and operational risk. Hedging strategies, risk mitigation techniques, and the use of derivatives are also explored.

Throughout the course, a strong emphasis is placed on applying theoretical concepts to practical situations. Students are expected to actively participate in class discussions, analyze case studies, and complete challenging assignments. The use of financial databases and software is integrated into the curriculum, providing students with hands-on experience in applying advanced corporate finance techniques. By the end of the course, students are well-prepared to pursue careers in investment banking, corporate finance, and financial consulting.