|Using the case method and an array of guest lecturers to supplement the casework, this course is meant to aid those students who are considering being part of an entrepreneurial enterprise or evaluating such enterprises from the seat of the public or private financier.
The chief objective of the course is to provide an understanding of the criteria for a successful entrepreneurial endeavor and the methods of analysis to make the proper judgment. The casework will consider ventures representing broad sectors of the economy, including telecommunications, healthcare and consumer services. These sectors will be used to examine entrepreneurial activity and analysis. The impact of the Internet as an enhancement to these sectors will be interwoven throughout.
The class analyzes the role of various functional areas e.g., finance, marketing, and strategy, toward achieving success in new ventures.
Daily discussions will cover issues of private equity finance from seed stage through growth equity to recapitalization. Deal structure, incentive design, risk-based valuation, financial management in private, rapidly growing enterprises will be included. Exit strategies will be covered, including initial public offerings, mergers and strategic partnerships. Restructuring poorly performing projects will also be a component.
Attention is also given to analyzing the suppliers of capital, individual investors, venture capitalists, commercial banks, asset-based lenders and investment banks.
Before each class, students will be required to submit a one-or-two page executive summary that includes analysis and recommendations. Group work is encouraged, but not required on these executive summaries. Memoranda with up to three names on them are acceptable. We will discuss the study questions and the material in each class period.
Preassignment: Students are responsible for a memorandum for each case we discuss in the first class. The first class assignment is detailed in the CoursePack.
Also, please note that attendance for all ten weeks of the course is very important for your success and for other students' success in this team-based course. If you are hoping to register for this course but have not yet secured a seat, you must attend class sessions as it is impossible to catch up. If you have not attended and register after the start of the quarter, you will be asked to drop the course.