Brandeis University
International Business School
IEF 218f – Financial Modeling II (2)
Fall 2014
Purpose of the Course
This course adds to Modeling I by having student do more rigorous valuations of firms.
Student workload will be high. Students are expected to read the cases ahead of their due date
so that class discussions are optimized. Students should work in groups, and they will do the
cases at home in anticipation of the following week’s class discussion.
Materials for the Course
 All cases may be purchased at: https://cb.hbsp.harvard.edu:443/cbmp/access/26421937
 Any other readings will be posted on Latte
Grading
 Case analyses (80%), class participation (20%)
 Low class/quality participation will result in a final grade of B
 All work is submitted electronically and graded work is returned within 48 hours
Office Hours
 Tuesdays/Wednesdays: 11 am – 2 pm
 Thursdays: 9:20 pm
 Fridays 12:30 – 2 pm
 Walk-in and by appointment - email me at canella@brandeis.edu
Rules of the Road
 NO open laptops/tablets or cell phones in class
 Arrive on time and be prepared
 Take and display your name cards to class
 Seats will be assigned, and you will use the same seat for the remainder of the class
 Cases: you may work individually or in groups of two (I must sign off on groups)
 If you have a documented disability, please see me
 You are expected to follow Brandeis’s policies on academic integrity; check
http://www.brandeis.edu/studentaffairs/srcs/ai/top10students.html
Brandeis University
International Business School
IEF 218f – Financial Modeling II (2)
Fall 2014
Week
Topic
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Introduction
Leveraged buyouts
Sources of value
Deal structuring
Technology LBOs
Optimal capital structure
WACC vs. APV
Private equity
Strategic vs. financial buyers
Capital structure and valuation
Currency effects on valuations
Capital Cash Flows vs. APV
Leveraged transaction
characteristics
Telecommunications firms
Sum of parts valuations
Comparables valuations
Wrap-up and conclusions
Case Due
The Hertz Corporation (A)
Seagate Technology Buyout
Berkshire Partners: Bidding for Carter’s
Valuing a Cross-Border LBO: Bidding
on the Yell Group
Amtelecom Group, Inc.