LEARNING OUTCOMES

The course aims to provide skills necessary for preparation and management of financial plan, from the perspective of a financial management operator and that of a business consultant, paying attention to recent evolution in financing model of italian SME's. Great attention will be paid on bank-business relationship in its recent evolution and to the choice of financial instruments to implement financial plan.

AIMS AND LEARNING OUTCOMES

The course aims to provide the skills necessary for preparation and management of financial plan, from the perspective of a financial management operator and that of a business consultant, paying attention to recent evolution in financing model of italian SME's.

TEACHING METHODS

Face-to-face learning

SYLLABUS/CONTENT

Defining the financial plan - reference framework

 The connection with the company strategy, the definition of the needs to be financed. The financial plan as a feed back of the strategy

 Construction and dynamic management of the financial plan:

- the financial forecasting

- identification of coverage solutions

- verification of the feasibility of coverage solutions.

- the choice of financial instruments

The financial plan - financial needs and coverage solutions

 Financial forecast. Employments, existing sources and gap to be filled, qualitative and quantitative.

Forecasting tools, short term and long term

 Strategic criteria and evaluations for the definition of the financial structure. Balance between shareholders value and the preservation of the financial equilibrium. Off balance - sheet assets in SMEs.

 Fixed assets and financial investments

 Solutions to hedge the growht of fixed assets. Rental vs purchase, solving financing problems. The fiscal questions in development financing decisions.

Risk management of trade receivables. 

 Solutions to hedge the development of working working capital. Calculations of convenience

 The solution of the problem of liquidity reserves managing of the net financial position in the short term. The management of liquidity stocks

The financial plan - Credit capacity assessment

 The assessment of credit capacity - generality.

 The riskiness.

 Repayment capacity.

 The guarantees, role and types. Personal and intragroup guarantees. Real warranties. External guarantees (National Guarantee Fund and Confidi)

Financial instruments in risk capital, from intermediaries and on the financial market

 The stock market listing. IPO. Capital increases on the market.

 Private equity - types of operations and types of operators. Venture capital, development capital. Feasibility conditions and convenience calculations for the company

Financial instruments in debt capital, on the financial market and as intermediaries

 Financial instruments on the market: issuance of bonds on the market, issuance of commercial papers / financial bills.

 Mini-bonds as a chance, for SME's. Feasibility conditions and need for support tools

 Financial instruments from intermediaries

 Short-term credit facilities

 Medium and long term financial instruments. Mortgage loans, unsecured loans to m.l.t. and leasing. Mortgage - lease convenience calculations.

The choice of financing logic

 Financing of the firm itself

 Project financing.

 Securitization of assets. The tranching of risk.

 Leveraged buy outs

The bank - company relationship. Evolution and recent problems

 The recent evolution of the banking system; the effects of Basel 2, Basel 3 and Unione Banking on how to manage credit. The crisis and the restrictive evolution of supervisory policies.

 Rating system drivers.

 Evolution needed in SME's financial behavior. New relational aspects. New choices in financial structure.

 Towards a new model of financing the development of SMEs in Italy. The signals to be grasped and the development needs of the corporate financial culture.

Special section: Risk management of financial risks

 Exchange rate risk: company policies, valuation and hedging techniques with the use of derivative instruments.

 Interest rate risk: management policies and hedging derivatives

 Risk of changes in the prices of raw materials: quoted raw materials and head-ing instruments

RECOMMENDED READING/BIBLIOGRAPHY

For students attending lessons : lecture notes and support materials

Additional information for non-attending students:

Textbook : BREALEY MYERS SANDRI, Principles of Corporate Finance - 7th edition, MCGRAW HILL 2015 - chapters 11-14-15-16-17-18-19-20-21-22-27-28-30-31