Corporate Finance

Corporate finance deals with activities and decisions that companies make and the analysis, tools and techniques used to make these decisions, with the main goal to maximize shareholders’ value. Corporate finance is regularly associated with investment banking – the main role of the latter is to evaluate the company's financial needs and to raise the appropriate type of capital that best fits those needs. Very often corporate finance is associated with transactions in which capital is raised in order to create, develop, grow or acquire businesses.

Corporate finance professionals make capital investment and financing decisions (defined as LT) related to fixed assets and capital structure. Their work would involve project valuation, valuing flexibility, measuring risk and quantifying uncertainty. They are able to answer questions such as which projects to be financed, whether to use equity or debt, or questions related to paying out dividends.

Decisions related to current assets and liabilities (defined as ST) focus on managing cash, inventory, short-term debt, payables and receivables, working capital, cash conversion cycle, return on capital, economic value added (EVA), discounts and allowances, factoring and others.

Sample corporate finance / investment banking transactions: raising seed, start-up, development or expansion capital; venture capital and private equity; mergers, acquisitions (M&A) and sale of private and public companies; MBO and MBI; equity issues, IPOs and secondary offerings; financing joint-ventures (JVs), project finance, public-private partnerships (PPPs), privatizations and others.

Choose from the listed Corporate Finance trainings delivered by MBAcademy