Azerbaijan University
School of Business
Fi 4440 Investment Banking
Instructor: Ilgar Maharramov, MBA, PhD candidate
Phone: (+99450/70) 255.16.09
E-mail: de.ilgar@yahoo.de
Class hours: Wednesday7-9:30 p.m.
Office hours: after class or by appointment
1. Overview: This is an introductory course about the professional practices of investment banks
and the business of an investment bank. This involves raising capital (debt, equity, IPO etc) for
clients and advising on M&A, restructuring, asset management. In addition Investment banks
sell securities to institutional investors. They also trade for their own account. Many banks are
finally involved in managing third-party assets. We start with overview of Global financial
markets and Azerbaijan banking sector and follow up with the description of the investment
banking industry, historical, legal and organizational aspects of investment banks, look through
different business valuation models and in-depth discuss the professional services offered by
investment banks. Throughout the course we will also work on case studies with references to
global players in investment banking.
2. Course Objectives:
- Provide students with a fundamental understanding of the role of Investment Banks and
how they operate.
- Provide a framework for analysis of the various businesses of an investment bank.
- Give a framework of reference for future professionals in the investment banking
industry.
3. Expectations: As outcome of this course, students are expected to have a comprehensive
understanding of the business of investment banking and take grasp of financial and
management tools for their future career in finance and banking.
4. Prerequisites: The material in the course will cover key aspects of investment banking
business. Therefore, students will need to have basic understanding of finance and banking
5. Grading: Students’ grade will be based on quizzes, a presentations and final exam. There will
be group assignments as well.
The grade will be weighted in the following manner:
- Classwork and quizzes: 20%
- Presentations: 20%
- Class Attendance & Participation: 10%
- Final exam: 50%
6. Books:
- Investment Banking: Institutions, Politics, and Law Revised Edition By Alan D.
Morrison and William J. Wilhelm, 2009
- Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions by
Joshua Rosenbaum, Joshua Pearl and Joseph R. Perella, 2009
- McKinsey & Company Inc. Valuation: Measuring and Managing the Value of
Companies, 2005
7. Topical outline (but not limited to!)
7.1 Introduction to Investment Banking:
- Financial markets and investment banking: global perspective
- Investment banking: legal and historical framework
- Corporate Governance in investment banks
- Risk management in investment banks
- Due Diligence
7.2 Investment banking activities and business strategies
- Debt and Equity financing
- Private equity
- Mergers and Acquisitions
- Leveraged Buyouts
- Initial Public Offering
- Securities
7.3 Comprehensive valuation analysis
- Valuation Methodologies: Why do we value companies?
- Difference between Book Value and Market Value
- Generally Accepted Valuation Methodologies
- Financial statement analysis
- Writing investment memorandums and proposals
8. COURSE METHODOLOGY
The primary teaching vehicles used in this course include Lectures, Class Discussions and a Group
Project.
This is Not a ‘lecture' course! Hopefully, it will be an interactive and dynamic learning experience. This
class provides a vehicle for creativity, communication, initiative and risk-taking. Your quality
participation is required for every class.
9. POLICIES
Prerequisite: None. Due to the fact that this semester we have to cover this course and the course
requires good amount of readings, you should be prepared to spend significant time outside of class
preparing for the time in class.
Attendance: I will take attendance on each class and will inform your advisor.
Classroom Conduct: We have to cover a lot of material during the semester. It is, therefore, very
important that we act in a serious and courteously manner at all times. In this way, we can have a
classroom where learning can take place. The course should also be an enjoyable experience.
Some basic classroom rules that I think will help us achieve these goals are:
1. PARTICIPATE! PARTICIPATE! PARTICIPATE! This is the key to learning and enjoying being in
class. Don't worry about making mistakes in front of others. Everyone is struggling with new and
difficult concepts in this course. Making mistakes is the best way to learn.
2. ALWAYS FEEL FREE TO ASK QUESTIONS AND MAKE COMMNENTS. This helps me
understand if a concept is not getting across to you and it helps you learn the material.
3. TRY TO SHOW GOOD TIME MANAGEMENT SKILLS. Since there are so few classes, it is very
important to be at each one on time. Try to show up promptly in time so we can start at 6.30 p.m.
sharp. And be in time after break. However, if you are late, please enter the classroom quietly.
4. Please DO NOT TALK to your neighbor while someone else has the floor, whether that other
person is a fellow student or I.
Cheating: Cheating will not be tolerated. Leaving the room with an exam, attempting to steal an exam,
copying down questions from an exam, attempting to obtain assistance from other students during an
exam, using unauthorized reference material during an exam or turning in work done by others will be
considered cheating. In case if I notice your dishonest behavior on quizzes or exams, you will loose
50% of the points (tests, exams) on the first attempt. If you continue cheating you will be graded 0 for
the test/exams. The facts will be turned over to the Dean or Associate Dean of the School for further
action. Members of the academic community, students are expected to recognize and uphold
standards of intellectual and academic integrity. The School and I expect that students are honest, are
eager to learn and that they submit for credit only the products of their own efforts.
Quizzes: You will have 10 quizzes during the semester. Each quiz will be given during a first 30-40
minutes period of the class. The test will only cover the parts of the chapter you were assigned to read.
Exams:
One midterm and one final exam consist of writing assignments, true/false and multiple
choice type questions. Midterm Exam covers first nine chapters while Final Exam will cover the rest of
the book.
Make-up Tests:
Due to the duration of this class, make-up of ONLY TWO weekly tests will be
possible in case of illness or emergency. No make-up of midterm and final exams is available. If an
emergency occurs and you cannot take the exams, I will consult with the Dean to see if you can take a
make-up.
The final grading scale will be as follows: A+, A, A-, B+, B, B-, C+, C, C-, D+, D, D-, F.
Scores
AKTS scores
A+ = 97 – 100
A
= 93 – 96
A- =
90 – 92
B+
=
87 – 89
B
= 83 – 86
B-
= 80 – 82
C+
= 77 – 79
C
=
C-
= 70 – 72
D+
= 67 – 69
D
= 63 – 66
D-
= 60 – 62
F
= 0 – 59
73 – 76
A = 90 – 100
B = 80 – 89
C = 70 – 79
D = 60 - 69
E = 50 – 59
Fx = 40 – 49
F = 0 – 39