Скачать презентацию MSc in Investment Management Elective in Private Equity Скачать презентацию MSc in Investment Management Elective in Private Equity

2ebb4d4cd5bfcc7fce680a1564a1a3d4.ppt

  • Количество слайдов: 16

MSc in Investment Management Elective in Private Equity: Objectives, structure & outline Course leader: MSc in Investment Management Elective in Private Equity: Objectives, structure & outline Course leader: Prof. Robert Cressy Cass Business School London 1

Haui Networks n n On Tuesday 4 th March, 2003, at 0930 hours, Beijing Haui Networks n n On Tuesday 4 th March, 2003, at 0930 hours, Beijing time, David Tang, CFO of Haui Networks, a Chinese Telecomms startup company based in the Virgin Islands, n n along with 6 other Co-Directors, will sign a contract for US$2 m with a Taiwanese Venture Capitalist as part of the first round of funding Copyright © Robert Cressy, 2003 2

n The business expects n n its first commercial contract for the supply of n The business expects n n its first commercial contract for the supply of network software at the end of June with a major China network provider Copyright © Robert Cressy, 2003 3

n Currently, it employs n n n 17 programmers 11 other staff members These n Currently, it employs n n n 17 programmers 11 other staff members These people are working flat out to n n deliver promised software meet the milestones set by the VC Copyright © Robert Cressy, 2003 4

History n Some 2 years ago, David Tang was n n n a modest, History n Some 2 years ago, David Tang was n n n a modest, impecunious young student on the MSc Finance course at City University (now Cass) Business School David had n n graduated from the famous Beijing University along with his present colleagues and co. Directors Copyright © Robert Cressy, 2003 5

History cont’d n David, a tutee of mine, had n n done the course History cont’d n David, a tutee of mine, had n n done the course in Entrepreneurial Finance, at course-end he presented a version of his business plan to n n n a panel of venture capitalists academics He wanted to raise venture capital for his startup company n He presented us with many charts showing why it was a good investment Copyright © Robert Cressy, 2003 6

n Finally, after a search of scores of potential VCs in the US, UK n Finally, after a search of scores of potential VCs in the US, UK and China, somebody believed him! Copyright © Robert Cressy, 2003 7

History cont’d n Now his, along with his colleagues’ net worth is expected to History cont’d n Now his, along with his colleagues’ net worth is expected to be measured in many millions of US dollars Copyright © Robert Cressy, 2003 8

Questions n n How did this transformation take place? Is it repeatable? n This Questions n n How did this transformation take place? Is it repeatable? n This course will help to provide some answers! Copyright © Robert Cressy, 2003 9

Learning objectives of the course n To understand the nature, role and mechanisms of Learning objectives of the course n To understand the nature, role and mechanisms of venture capital in n The funding of fast growth businesses The restructuring of existing corporations To be able to successfully raise venture capital for n n a potentially fast growth startup company or a management buyout Copyright © Robert Cressy, 2003 10

Teaching format n Structure of teaching n Lecture sessions n n Academic presentations Practitioner Teaching format n Structure of teaching n Lecture sessions n n Academic presentations Practitioner presentations n n Invited speakers from the VC industry Student presentation of business plans n Panel of academics and VCs will evaluate proposals Copyright © Robert Cressy, 2003 11

Coursework n Team presentations n Either n n Or n n n MBO VC Coursework n Team presentations n Either n n Or n n n MBO VC funding proposal 20 minutes per team Written up business plan n n Startup VC funding proposal Word limit! Marking n Both equally weighted in final mark Copyright © Robert Cressy, 2003 12

Topics n n n The context of venture capital investment The structure of venture Topics n n n The context of venture capital investment The structure of venture capitalist and investor relationships: the limited partnership Selection criteria and monitoring Staging & syndication Exit routes Financial structure of Early Stage deals n Case study: Haui Networks (China startup) n n Cumulative convertible preference shares Ratchet mechisms Copyright © Robert Cressy, 2003 13

n Company valuation: the 5 methods n n VC, NPV, ANPV, Option, Comparables Financial n Company valuation: the 5 methods n n VC, NPV, ANPV, Option, Comparables Financial structure of Later stage deals: Management buyouts n n n incentive mechanisms risk Case study: Arthur Anderson leveraged buyout Copyright © Robert Cressy, 2003 14

Reading list n Main texts Gompers and Lerner, The Venture Capital Cycle, MIT press, Reading list n Main texts Gompers and Lerner, The Venture Capital Cycle, MIT press, 1999 (Main text) Smith and Smith, Entrepreneurial Finance, Wiley, 2000 (Additional text) Gompers and Sahlman, Entrepreneurial Finance, Wiley, 2001 (Case studies) Wright and Robbie, Survey of management buyouts, JBFA Copyright © Robert Cressy, 2003 15

Course website n The URL for this is n n http: //www. staff. city. Course website n The URL for this is n n http: //www. staff. city. ac. uk/~cressy/teaching/ The site contains other course information including: n n n Full list of references Course outlines Full set of lectures notes Past coursework presentations Last-minute changes to visiting speaker arrangements Copyright © Robert Cressy, 2003 16