ICM512: Corporate Financial Modelling for Investment Banking

Module code: ICM512

Module provider: ICMA Centre; Henley Business School

Credits: 20

Level: 7

When you'll be taught: Semester 2

Module convenor: Dr Dina Ghanma, email: dina.ghanma@icmacentre.ac.uk

Pre-requisite module(s):

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded:

Placement information: NA

Academic year: 2024/5

Available to visiting students: No

Talis reading list: No

Last updated: 19 November 2024

Overview

Module aims and purpose

The module is designed to develop practical corporate financial modelling skills that can be applied in roles within corporations, investment banks, and investment firms. It provides a rigorous grounding on the practice of valuation in application to a real-world company with a focus on Mergers and Acquisitions. The module is co-taught by Financial Edge, a leading industry trainer for analysts at top investment banks. 

Module learning outcomes

By the end of the module, it is expected that students will be able to: 

• Critically assess the scope and motives of merger and acquisitions (M&A), the pros and cons of alternative M&A financing methods, and the potential for value creation 
• Value a real corporation using best-practice valuation methods (DCF, Multiples, LBO) 
• Design and build a comprehensive ‘pitchbook’ for a real-life transaction, undertaking independent research analysis and employing financial modelling techniques  
• Present a coherent investment story and strategic alternatives for a real company  

Module content

Module content 

• Mergers and Acquisitions: Motives, Financing and Evaluation 

• Financial Statement Analysis 

• Discounted Cashflow Modelling  

• Multiples Valuation 

• Leveraged Buyout Modelling 

• Pitchbook Building 

Structure

Teaching and learning methods

The in-house lectures are used to present theory and evidence about Corporate Finance and M&A while the Financial Edge Masterclasses will be practical, workshop-style sessions in which modelling techniques are explained and implemented. 

Study hours

At least 8 hours of scheduled teaching and learning activities will be delivered in person, with the remaining hours for scheduled and self-scheduled teaching and learning activities delivered either in person or online. You will receive further details about how these hours will be delivered before the start of the module.

Please note the independent study hours above are notional numbers of hours; each student will approach studying in different ways. We would advise you to reflect on your learning and the number of hours you are allocating to these tasks.

Semester 1 The hours in this column may include hours during the Christmas holiday period.

Semester 2 The hours in this column may include hours during the Easter holiday period.

Summer The hours in this column will take place during the summer holidays and may be at the start and/or end of the module.

Assessment

Requirements for a pass

50%

Summative assessment

Penalties for late submission of summative assessment

The Support Centres will apply the following penalties for work submitted late:

Assessments with numerical marks

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of three working days;
• the mark awarded due to the imposition of the penalty shall not fall below the threshold pass mark, namely 40% in the case of modules at Levels 4-6 (i.e. undergraduate modules for Parts 1-3) and 50% in the case of Level 7 modules offered as part of an Integrated Masters or taught postgraduate degree programme;
• where the piece of work is awarded a mark below the threshold pass mark prior to any penalty being imposed, and is submitted up to three working days after the original deadline (or any formally agreed extension to the deadline), no penalty shall be imposed;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

Assessments marked Pass/Fail

• where the piece of work is submitted within three working days of the deadline (or any formally agreed extension of the deadline): no penalty will be applied;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension of the deadline): a grade of Fail will be awarded.

The University policy statement on penalties for late submission can be found at: /cqsd/-/media/project/functions/cqsd/documents/qap/penaltiesforlatesubmission.pdf

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Formative assessment

Formative assessment is any task or activity which creates feedback (or feedforward) for you about your learning, but which does not contribute towards your overall module mark.

Students will be encouraged to post progress updates in a Discussion Forum for feedback from peers and instructors. Seminar and practical classes will allow students to apply techniques that directly feed into assessed work, with instructor-led feedback.  

Reassessment

Additional costs