At the end of this course, students will be able to:
a. Be familiar with the theories and the key elements to be considered for an international financing strategy;
b. Have a good understanding of the key players involved in capital markets and with fund & capital raising, their respective behaviors, targets and constraints, in a dynamic environment;
c. Understand the main instruments and sources of capital and funding, the characteristics, advantages and limits of each source of funds and the main processes to access them;
d. Assess the various routes a company might consider given its specific environment to optimize its financial flexibility and keep its cost of funds under strict control.
This course focuses on the key elements determining a financing strategy, with a theoretical part, then enriched with many case studies.
The introduction begins with the theoretical framework of typical capital structures and the main related theories (primarily Modigliani-Miller and various key developments thereof). The course analyses the debt-equity continuum, its main buckets and the way these buckets interacts dynamically.
The role and the characteristics of the main capital market players are examined from an issuer / fund raiser perspective.
The course examines then the raising processes of various elements of the debt-equity continuum, and the criteria and constraints for such capital / fund raising.
At the end of this course, students are expected to be able to (i) adequately assess the situation of a candidate issuer, (ii) analyze and evaluate a comprehensive financing strategy that incorporates the needs of the company, the dynamics of the capital markets and the possible role of the various players, and (iii) present the key elements of the processes to implement such strategy.
