Financing Business Development

• 26 hrs lectures
• 13 hrs exercises

The aim of the course is to:

- Familiarize students with fundamental concepts, current issues, and trends in business development financing in relation to corporate strategy.

- Present approaches to measuring company value and the process of determining company value.

- Guide students in understanding the principles and processes of creating a financial plan as part of a business plan, evaluating the effectiveness of business development projects, and managing project cash flow.

- Develop a clear understanding of potential sources of financing, their costs, and their utilization in business development decision-making.

Knowledge: Students will be able to describe and explain the evolution of business objectives at various stages of enterprise development. They can describe approaches to determining company value and the process of valuation, define basic value drivers. Students understand the significance of the cost of capital category for selecting appropriate financing sources. They will be capable of using diverse methods to construct financial plans and short-term budgets, understanding the limitations of each method. Students will be able to describe fundamental decision-making tasks related to corporate investment activities, as well as suitable methods for evaluating alternative solutions. They will possess knowledge of potential capital-raising options.

Skills: Students will be able to assess the suitability of business financing sources based on various criteria and terms of provision, establish criteria for evaluating investment projects according to project type and corporate goals. They can select appropriate approaches to measuring and considering risk in investment decision-making. They understand methods for hedging exchange rate risk and can calculate hedging costs. Students will be able to create a financial plan and evaluate its implementation.

Competencies: Students can propose suitable methods for financing business projects based on industry and business financial risk. They are capable of comprehensively assessing the economic efficiency of investment projects, including project risk analysis. They understand the limitations of different project efficiency evaluation methods and can consider non-financial factors in project sustainability. They can proficiently develop a financial plan for a business, including project cash flow planning, and implement measures to manage corporate cash flow effectively.

To successfully master the course, it is advisable to have knowledge of business economics, methods of presenting company results, and interpreting information contained in financial statements, as well as an understanding of financial analysis indicators.

• Chris M. Mellen, Frank C Evans. Valuation for M&A: building value in private companies. Hoboken, N.J. Wiley, 2010.
• Tim Koller, Marc Goedhart, David Wessels, McKinsey and Company. Valuation: measuring and managing the value of companies. Hoboken: John Wiley & Sons, 2010
• MAŘÍK, M. a kol. Metody oceňování podniku: Proces ocenění, základní metody a postupy. 4. vyd. Praha: Ekopress, 2018.

• REŽŇÁKOVÁ, M. Efektivní financování rozvoje podnikání. Praha: Grada, 2012
• REŽŇÁKOVÁ, M. a kol. Řízení platební schopnosti podniku. Praha: Grada, 2010.

They are available in e-learning.

1. Introduction to the subject: strategic objectives of the company and their measurement
2. Investment decision making: cash flow forecasting
3. Investment decision making: methods for evaluating the effectiveness of a project
4. Investment decision making: a case study
5. Managing the solvency of the enterprise in the long term: working capital and factors influencing its amount
6. Financing strategy: potential sources of financing
7. Sources of financing for business development projects - I.
8. Sources of financing for business development projects - II.
9. Cost of capital and its use in corporate decision-making
10. Cash flow management: managing receivables and cash
11. Financial plan as part of the business plan. Analysis of plan execution
12. Measurement and management of enterprise value. Value drivers.
13. Summary, reserve

1. Definition of course completion conditions: assignment of a seminar paper. Cash flow of the company, evaluation of stability and profitability of the company.
2. Planning cash flow from investment projects and methods of evaluation of investment projects.
3. Determining the working capital requirements of an enterprise.
4. Determining the price of financing sources.
5. Financial plan for enterprise development.
6. Cash flow management

Students will be evaluated based on the completion of a seminar project focused on financing a business development project and a written test assessing practical skills and the application of theoretical knowledge. The seminar project can be completed by teams of up to three students.

The written test will contribute 40% to the overall assessment, while the seminar project will contribute 60%. A classified credit will be awarded if the student achieves at least 50 points in total.

The seminar project can be written in a team of up to three students. Requirements for the seminar project, deadlines for its completion, and evaluation criteria are listed in the e-learning platform.

The written test comprises examples and theoretical questions. Students have the opportunity to retake the test once.

Students studying according to the Individual Study Plan (ISP) have the same conditions for obtaining a classified credit. Deadlines for project submission and the written exam may be set individually.

In addition to scheduled classes, communication can be conducted via email to the published address or during office hours.