The Executive Master in Finance, Banking & Real Estate (EMFBRE) prepares students to offer high quality solutions to ﬁnancial, banking, and real estate problems both operationally and strategically. The program focuses on theoretical and practical knowledge, critical and analytical thinking, and problem-solving skills, while emphasizes key elements of corporate culture: a ﬁne blend of leadership and respect for others, ethics and the appreciation of diversity, values and solidity.
The SDA Bocconi/AUBG’s Master in Finance, Banking & Real Estate consists of:
- A 16-courses’ part-time & post-experience program, delivered in conjunction with the SDA Bocconi School of Management.
- Highly interactive courses, aiming high to bridge the gap between theory and practice.
- Multi-dimensional and intertwined perspectives on Finance, Banking & Real Estate.
List of modules:
Module 1: Financial Analysis (12, 13, 14 October 2017), Prof. Lucilla Tealdi (SDA Bocconi)
The learning objectives of the course are two: strategic thinking & problem solving skills and management knowledge.
During the management knowledge, participants will understand all the core concepts of financial analysis including:
- the objectives of corporate finance;
- the analysis of annual reports and their interpretation and reclassification;
- the identification of “reasonable” ratios that will allow to understand the financial health of a company;
- the valuation of ex ante and ex post cash flow statement;
- the discovery of the relevancy of the concept of planning;
- working capital valuation.
During the strategic and problem solving part, participants will gain exposure to independent problem solving and simulations taken from a real work context. Students will be able to synthesize the basic elements of financial analysis being able to communicate those elements through relevant documents, and they will learn to use quantifiable skills appropriate to problem solving in a real world context.
Participants will be, also, able to analyze financial and business situations using data, knowledge of theory and logic to make recommendations for problem solving and decision-making. They will develop the capacity to exercise good judgment; they will be able to grasp facts and concepts and apply them to solve problems, draw conclusions and recognize consequences; and they will be able to break down or put together ideas and information to clarify relationships and produce conclusions and plans.
The course will cover the following topics: the objectives of corporate finance; the analysis of annual reports and their interpretation and reclassification; the identification of “reasonable” ratios that will allow to understand the financial health of a company; the valuation of ex ante and ex post cash flow statement; the discovery of the relevancy of the concept of planning; working capital valuation.
- Annual reports valuation and reclassification
- Ratio analysis
- Cash flow statement
- Cash budget
- Working Capital Management
Module 2: Corporate Finance (02, 03, 04 November 2017), Prof. Leonella Gori (SDA Bocconi)
The purpose of this course is to introduce the participants into the basics of modern corporate finance, which comes coherently after the course of financial analysis. In this course we will work on investment policy (capital budgeting and valuation) and financial policy (capital structure, and dividend policy). The themes we deal with in this course are particularly relevant for business decision-making in areas as whether or not to invest in a firm or project, and how to deal with uncertainty. Corporate finance can be seen as supportive to other fields such as strategy or marketing; often in these fields the business decisions are formulated (e.g., in what markets or products should we invest), whereas in corporate finance we value these choices and analyze how to fund them best.
- Understanding the role of capital budgeting in finance.
- Choosing between the most appropriate criteria to evaluate economically investments.
- Understanding the financial structure of companies.
- Relating the financial structure of firms to capital budgeting decisions.
- Constructing the cash flows and calculating NPV and IRR for investments.
- Computing the cost of capital of firms and specific cost of debt and cost of equity.
- Evaluating investments based on the specific company’s capital structure.
Module 3: Financial Modeling (23, 24, 25 November 2017), Prof. A. Gurov (AUBG)
This course will provide participants with techniques and models of data analysis to assess values and assumptions to support managerial and financial decisions. It aims to show how quantitative methods are applied in a real context. Focal points of the course are analysis of internal and external data, decision making based on “rational methodologies“, deterministic and stochastic simulation for financial evaluations.
- Data analysis: methodologies and models.
- A set of practical application of statistical techniques that serve the decision making process.
- Data models that measure relations between variables, regression models, and techniques to identify patterns in time series data and make forecasts.
- Simulation techniques, starting from a deterministic approach.
- The evolution of financial modeling.
- The Monte Carlo Simulation.
Module 4: Financial Markets’ Theory and Portfolio Management (14, 15, 16 December 2017), Prof. J. Nilsen (AUBG)
Which are the effects of international financial markets and institutions on the global economy? Will the economy improve in the future so that it is a good to time to invest in a specific asset? Which is the best strategy to finance a specific business?
This course provides answers to these kind of questions by examining how international financial markets and institutions work and how they affect our everyday life.
Huge flow of funds throughout global financial markets is transferred every second which in turn effect business profits, production of goods, services and economic well-being of countries. By the end of the class, students will gain a broad understanding of the key issues in inter-national finance. Students will be able to identify the appropriate theoretical discussions and to evaluate their applications in the real world.
The course will also focus on current events reported in the financial press by starting each class with an extensive class discussion of what has recently appeared in the Financial Journals and will use the analytic frameworks developed in class help us to understand these developments
This course provides an introduction to the study of financial assets and international financial markets. Topics covered include:
- The purpose and functioning of financial markets and institutions.
- Valuation of financial asset
- Analysis of risk and return, also in the light of the recent financial crisis.
The course will address questions such as the following:
- What are the functions of financial markets?
- What is bought and sold in financial markets? How are these markets regulated?
- Are financial markets efficient?
- What are interest rates and what is their role in valuation?
- What do central banks do?
- What are the aims and the tools of monetary policy?
- How does the foreign exchange market work?
- What are financial crises, and why do they occur?
Module 5: Real Estate Valuation & Financing (11, 12, 13 January 2018), Prof. Giacomo Morri (SDA Bocconi)
The objective of the course is to introduce the participants to the real estate market explaining rules, links with the financial sector and players’ roles. Students will be provided with an overview of the industry to understand how players face problems to get to the proper solution and with a basic knowledge to develop their skills in the field.
The objective of the course is to provide the students with the basic principles of financial analysis, in order to allow them to evaluate the development, trading, financing and portfolio management operations, along with a clear understanding of the inner and outer critical factors relative to real estate market transactions.
The course will provide an introduction to real estate economics and the relationships with the capital market. After the analysis of the main economic characteristics of properties, students will be engaged in the understating of an economic model connecting the space market with the broader capital market and developers’ activity. Then, students will examine, understand and apply the most important real estate valuation approaches (market, income, financial) through class sessions and case studies. The valuation techniques will be a key factor to identify the most important aspects to develop a comprehensive real estate business plan for both internal and fund raising purposes.
The first part of this course begins with a general overview of the real estate market followed by an analysis of the decision - making process involved in any direct real estate investment. In the second part, we will turn to debt financing instruments such as property loans.
The structure of the course makes your individual study and preparation outside class extremely important.
The course covers the real estate market providing the students with the necessary tools in order to understand the tendencies of the different market segments (residential, office, commercial and industrial) and the various business models used by the major players (property companies, property management companies, developers, real estate funds).
Among the other contents, real estate financing techniques will be explained in order to understand the difference between the traditional corporate finance approach and the structured approach commonly used in property financing.
For all the topics, after an introductory theoretical part needed to provide basic tools, the course will include case studies, financial models for real estate and examples based on the main transactions occurred over the last few years.
- Course presentation
- Introduction to real estate
- Real estate valuation
- Financial models with Excel: rules and tips (Case Study: Appraisal (Office Tower))
- Financial models for Investment Valuation (Case Study on Development)
- Real estate financing (Case Study on Financing)
Module 6: Banking Strategy (01, 02, 03 February 2018),Prof. Giampaolo Gabbi (SDA Bocconi)
The course aims to build the map of the various areas of banking supply business, highlighting the distinctive features and developing an analysis of threats and opportunities in each of them, within the following long-term trends in the competitive environment: over-regulation, digitalization, low or even no inflation. The definition and construction of the strategy stems from the combination of the presence in the various business areas, and takes into account the capital constraints, the geographic reference and the medium- to long-term development objectives. In this light, the strategy setting is the outcome of the definition of customer-product-market combinations, within an organizational and corporate structure that aims to achieve significant profitability targets for both shareholders and stakeholders. The course offers an understanding of efficient, original and responsible use of the key relationships that connect the above-mentioned features.
- The key relationships for the construction of the strategy.
- The relationship with the corporate world.
- The relationship with the retail world.
- The relationship with the private world.
- The consistency between business, organization and corporate structure.
- Decision-making, shareholders’ and stakeholders’ expectations and goals.
- Regulation and technology.
Module 7: Corporate Valuation (22, 23, 24 February 2018),Prof. Maurizio Dallocchio - Prof. Leonardo Etro (SDA Bocconi)
The course is focused on the valuation of corporations and SMEs from a financial point of view. Emphasis is given to valuation methodologies (and related issues) in broad sectors of the economy, including the manufacturing, consumer and services industries, as applied in practice. A special section of the course is expressly dedicated to corporate valuation applied to LBO and M&A deals. The primary objective of the course is to provide students with:
- The conceptual and theoretical basis of corporate valuation.
- Tools and methodologies to perform valuation assignments in practice and to identify valuation-related issues.
- A glimpse on how to combine theoretical knowledge with “Street” practice.
- Links to valuation approaches in contiguous areas such as M&A and Private Equity (covered specifically by other courses / streams).
Most exercises and case studies will be centered on corporate valuation issues using Discounted Cash Flows analysis (DCF), the Dividend Discount Model (DDM), trading multiples and transaction multiples approaches. These will be complemented by sector-specific and situation-specific valuation techniques, benchmarks and metrics.
- Key concepts, basic principles and main analytical tools.
- Discounted Cash Flow methodology, Dividend Discount Model and Case Study/ies.
- Relative Valuation and Case Study.
- Other methodologies and specific situations / sectors such as Tourism, Leisure, Soccer, Food & Beverage, and a preview into LBO, Private Equity and Venture Capital situations.
- M&A Valuation and Case Study.
- Putting it all together, overall review and Case Study.
Module 8: M&A, Investment banking & Private Equity (22, 23, 24 March 2018), Prof. Maurizio Dallocchio – Prof. Federico Pippo (SDA Bocconi)
- Participants will learn to appreciate not only how to value potential acquisition candidates, but also how to structure an M&A deal that satisfies a variety of constraints set by governmental policy, regulation, tax, labour laws, and the expectations of a wide variety of stakeholders.
- This course should enhance the ability of participants to execute every step of a merger, acquisition, or joint venture ― be it on the sell-side or the buy-side. Students will apply tools and frameworks that will help them value and finance mergers and acquisitions and joint ventures. They will learn how to use financial leverage while being cognizant of the risks of doing so.
- Class participants will learn that M&A is but one pathway to grow, restructure or harvest a business. Other choices would include internal development, strategic alliances and joint ventures. Indeed, M&A takes many legal forms. It may be enacted as a series of minority investments, or cross-shareholding agreements. Sometimes a joint venture is the initial choice by which firms may enter new markets, gain scale, and grow faster. Only later, may one partner in the joint venture company buy-out the other party, and then the transaction may be considered an acquisition deal.
- Students will also learn the mechanisms commonly employed to reduce the size or change the focus of a company, via the sale of minority interests, spin-offs, carve-outs, split-offs and tracking stock.
The main goal of the course is to combine a very rigorous theoretical approach with an applied view very closed to the language and the world of practitioners. For that reasons, a strong attention is given to provide and to build practical knowledge and technical skills on the following domains:
- M&A transactions (acquisition, merger, de-merger, equity carve out, spin off, split up, tracking stock).
- Cross Border M&A. Deal structuring and methods of payment.
- Private Equity investments & LBO’s.
Module 9: International Real Estate & Investments (12, 13, 14 April 2018), Prof. Federico Chiavazza (SDA Bocconi)
The course covers the international real estate markets providing the students with the necessary tools in order to understand the tendencies of the different geographical markets segments (Europe, U.S., CEE and emerging countries) and the various players.
The real estate capital markets will be described with a focus on REITs, property companies and real estate funds.
Topics will emphasize the importance of strategy and implementation in cross-border real estate investment, and include: the rationale, opportunities and risks of international real estate investing; the macro factors that influence the performance of real estate markets across countries; market specific factors that impact RE investment performance (property rights, taxes, transparency, planning procedures); the qualitative aspects of identifying and achieving successful projects; the growing market for international RE securities and strategies for portfolio management.
The topics covered thru reading, assignments, discussions and class project will allow prospective investors to assess the risks and rewards of major global real estate investment structures and make more informed decisions when considering international real estate in their portfolio of investments.
The structure of the course makes your individual study and preparation outside class extremely important.
For all the topics, after an introductory theoretical part needed to provide basic tools, the course will include case studies and examples based on the main transactions occurred over the last few years.
- Course presentation
- Introduction to international real estate
- Global Real Estate Capital Markets: size, flows
- European real estate market
- American real estate market
- CEE and Emerging countries real estate markets
- International real estate expansion strategies
- Where & why to invest in a specific market
- Real estate capital market: equity and debt
- Indirect real estate investments
- Private equity funds
Module 10: Entrepreneurial Finance & Venture Capital (26, 27, 28 April 2018), Prof. Alberto Dell’Acqua (SDA Bocconi)
This is a course that covers topics related to the financing of new ventures. In particular, it covers the fundamentals related to the “life cycle theory” of financing enterprises and the staging of venture capital investments. The course also addresses the key management objectives and techniques of the Venture Capital (VC) industry. Sessions related to the different forms of exit from VC investments, in particular the Initial Public Offering, ends the program.
- "Life Cycle Theory" of financing enterprises.
- Staging investments in venture financing.
- Strategic aims and operating levers of PE & VC investors.
- Planning a VC investment.
- Value creation in VC operations.
- Computing the IRR in VC operations.
- Analyzing and disentangling the determinants of value creation in VC investments.
- Comparing and assessing the alternatives for the investment way-out.
- Understanding the impact of the different VC levers on the IRR.
Module 11: Project & Infrastructure Finance (17, 18, 19 May 2018), Prof. Stefano Gatti (SDA Bocconi)
Students will learn and understand a methodology and financial technique to realize infrastructure investments projects. Students will also master key concepts commonly used in Project Finance and will understand how a Project Finance deal is structured, from contractual design, to risk allocation end financial modeling. Project and infrastructure finance will be analyzed from several viewpoints: the public authority, the end users, the lending institutions.
The difference between traditional corporate financing and specific project financing will be highlighted, stressing how a project financing framework deals with specific finance topics of managerial finance such as:
- The role of agency costs
- Management responsibilities.
- Cash flow control and appropriation.
Students will master key concepts commonly used in project financing, such as:
- The role of Special Purpose Vehicles.
- Ring fencing and bankruptcy remoteness of the vehicle
- Key contractual relationships (government/public sector- Contractors- lenders- investors, Public Private Partnerships (PPP).
- The basic theoretical foundation and practical application of project financing models (use of BOT versus Unbundled Models).
Students will also be exposed to understanding the following:
- Legal framework surrounding contractual and financial relationships.
- Public sector budget implications for certain guarantees or undertaking given to assure the financial viability of a project, (contingent liabilities issues).
Module 12: Financial & Enterprise Risk Management (07,08, 09 June 2018), Prof. A. Gurov (AUBG)
This course is focused on the different dimensions of risk, and students will learn to understand why risk is costly to the firm and why risk management creates value to the firm. The different sources of risk will be analyzed.
The aim of the course is to provide the participants with elements for understanding the most significant categories of risks, the different policies for their control and their impact on credit pricing.
Techniques of risk assessment and risk control will be explored so that participants will be able to analyze the impact of different levels of exposure on the enterprise value.
The course combines both an inside as well as an outside view of the corporate risk management activities. That will give a strongest appreciation of the value of risk control actions.
- Enterprise Risk Management’s framework and rationales.
- Risk Assessment.
- Risk Control.
- Cost of debt and role of Banking system.
- Credit Standing.
- Credit Pricing.
Module 13: Asset & Wealth Management (28, 29, 30 June 2018), Prof. A. Gurov (AUBG)
This course provides students with a clear picture of the wealth management business. Given that investors should attempt to achieve their financial goals considering portfolio diversification and hiring asset managers to practically implement it, the second aim of the course is to provide a comprehensive analysis of the portfolio construction process. After we have set the objectives for an investment, developed a portfolio strategy (or a strategic asset allocation) with good chance of meeting the goals and purchased the securities or mutual funds to really build the portfolio, the next step is to understand how results have to be assessed. The course aims to give students the most important tools used in the investment performance measurement.
- Understanding the wideness of the wealth management market and process.
- Defining and understanding portfolio return and risk.
- Structuring an asset allocation process.
- Understanding portfolio optimization and dealing with optimization criticisms.
- Calculating and interpreting the fundamental statistics used in evaluating the performance of investment managers/portfolios.
Module 14: Personal Leadership Development (19, 20, 21 July 2018), Prof. Leonardo Caporarello (SDA Bocconi)
(Un)Successful organizations are the result of the managerial action. In particular our course focuses on a two-level framework, which deals with the individual, and the others. Through the discussion of cases and experiences, and the use of appropriate theoretical references, the learning goals are the following:
- Individuals as a strategic factor: understanding the pivotal role of people within the organization.
- Leading others: discussing concepts and practices related to team processes and dynamics.
- Leading outside the lines: driving the organization towards results requires the ability to negotiate with multiple stakeholders.
The content of our course will be based on the following main pillars:
- Behaving in the organizations: analysing the individual level, and the critical determinant factors.
- Team structure and processes: developing concepts of team management, and describing the “dark side” of teams.
- Leading outside the lines: negotiating effectively.
Module 15: Financial Derivatives (13,14, 15 September 2018), Prof. A. Ganchev (AUBG)
The course aims at providing an understanding of the markets for derivatives instruments (forwards, futures¸ options and swaps) and of their uses for hedging and trading by corporations and financial institutions. The course will also explain how to price and calculate the market value of most plain vanilla derivatives.
We assume students have a basic knowledge of the functioning of derivatives (e.g. the difference between Exchange traded and over the counter derivatives) and of the characteristics and valuation of the underlying assets (stocks and bonds).
Forward and Future contracts
- Contract specifications and uses.
- The relationship between spot and forward prices.
- The valuation of forwards contract.
- The basis risk.
Forward rate agreements.
- Contract specifications and uses.
- Pricing and contract valuation.
- Interest rate swap and Currency swaps.
- Contract specifications and uses.
- Pricing and contract valuation.
- Main options contracts and their characteristics.
- The factors influencing option prices.
- Valuation of options through the binomial model and the Black and Scholes model.
- Risk neutral valuation.
- Options Greek’s and their role in option trading strategies.
- Hedging with options.
- Trading strategies with options.
- Volatility skew and volatility smile.
- An introduction to credit derivatives and financial innovation in derivatives.
Module 16: Planning & Control (27, 28, 29 September 2018), Prof. Massimo Aielli (SDA Bocconi)
This course provides a number of cost analysis methodologies that support the main evaluation processes in corporate profitability (in its many variations of process, product and customer) and the main strategic choices, such as managing of the cost price-cost relationship and cost containment. Therefore, cost analysis techniques are tied to the main corporate strategic decisions. The learning objectives are the following:
- Calculating the cost of the product / service.
- Identifying criteria (administrative, organizational, strategic) for evaluation the adequacy of the costing methodology.
- Using cost information to redefine the strategy, foster more effective trade and pricing policies and bettering the business’s overall cost structure.
- Managing the price-cost relationship: design and implementation of costing systems for the analysis of product margins.
- Cost to Serve and Customer Profitability Analysis.
- The cost management and activity-based costing approach.
- Managing the capacity costing.
- The Target Costing and costs management in launching new products / services.
- Managing costs and prices in oil companies and utilities.
- Managing costs and prices in manufacturing companies.
- Managing costs and prices in Internet businesses.
Master Thesis Defense (November 30 - December 1, 2018)
Graduation (December 2, 2018)