Valuation in Mergers and Acquisitions 2600-MRCdz2WPFf

After completing the course:

In terms of knowledge, the student:

• Understand the methodology of business valuation within the M&A context, including the principles of cash flow forecasting, cost of capital estimation, and terminal value identification. (S3_W01) (K_W01).

• Demonstrate knowledge of income-based methods (DCF – FCFF, FCFE, DDM), asset-based methods (NAV, replacement cost, liquidation value), and market-based methods (multiples such as EV/EBITDA, P/E, P/BV). (S3_W02) (K_W03).

• Possess an advanced understanding of economic theories and models (e.g., time value of money, risk and return) related to business valuation within the M&A context. (S3_W01) (K_W03).

• Be familiar with the legal and regulatory frameworks governing valuations within the M&A context (e.g., IFRS, International Valuation Standards, National Valuation Standards). (K_W04).

• Understand the impact of macroeconomic factors (inflation, interest rates, country risk) and industry-specific factors (industry life cycle, sectoral regulations, technological innovation) on valuation processes within the M&A context. (S3_W05) (K_W05).

• Understands the role of valuation in M&A processes as a tool supporting entrepreneurship development in domestic and global markets. Can identify how valuation influences corporate growth and expansion strategies. (K_W07).

In terms of skills, the student:

• is able to prepare and apply financial projections necessary for business valuation within the M&A context, including FCFF, FCFE, and DDM-based approaches. (K_U01).
• is able to develop projected income statements, balance sheets, and cash flow statements for valuation purposes. (K_U01).
• is able to calculate the cost of equity (CAPM, Fama–French three-factor model) and the weighted average cost of capital (WACC). (K_U01).
• is able to conduct a DCF valuation, calculate terminal value (Gordon growth model or exit multiple), and estimate enterprise value within the M&A context.(K_U01).
• is able to apply market-based valuation methods, select appropriate peer groups, and interpret resulting multiples. (K_U01).
• is able to build an Excel-based M&A valuation model using financial formulas, scenario analysis, and sensitivity tables. (K_U01).
• can accurately interpret technological, social, political, legal, economic, and ecological processes and their impact on business valuation within the M&A context (K_U02).

• is able to prepare a comprehensive valuation report in the context of M&A, including assumptions, results, and recommendations for management or investors. (K_U06).
• can plan and organize both individual and team work in the process of preparing a valuation in the context of M&A. (K_U05).
• Demonstrate the ability for self-directed learning and continuous professional development. (K_U09).

In terms of attitudes the student::

• Is prepared to critically analyze and question the results of a valuation in the context of M&A (e.g., discrepancies between methods, overly optimistic forecasts). (K_K01).

• Is able to think and act entrepreneurially, applying valuation in M&A processes to identify investment opportunities and create value in both domestic and global markets. (K_K04)

• Is prepared to adhere to professional ethical standards in the field of business valuation in the context of M&A.(K_K05).

• Understands the social responsibility of valuation (e.g., in restructuring, takeovers, or legal proceedings).(K_K05).

The learning assessment will be based on:
- a written final assessment (multiple-choice questions and 2 problem-solving tasks), and
- a project – group work (3–4 students).

The weighting of each component will be as follows:
- written final assessment – 80%
- project – 20%

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Supplementary literature to the materials provided by the lecturer:
1. Joshua Rosenbaum, Joshua Pearl, (2013) Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions NJ: Wiley
2. Koller, T., Goedhart, M., Wessels, D. and McKinsey & Company Inc. (2025) Valuation: Measuring and Managing the Value of Companies. Hoboken, NJ: Wiley.
3. Panfil Marek, Szablewski Andrzej red. (2011), Wycena przedsiębiorstwa . Od teorii do praktyki., Wydawnictwo Poltext,
4. Szczepankowski Piotr (2007), Wycena i zarządzanie wartością przedsiębiorstwa, Wydawnictwo Naukowe PWN, Warszawa
5. Międzynarodowe standardy Wyceny
6. Krajowe standardy Wyceny Specjalistycznej