ACC/MAN 662: Private Equity: Due Diligence and Value Creation

The course aims at exploring Private Equity (PE) as an alternative asset class on the rise and will equip the participants with a sound understanding of its characteristics and mechanics.
After outlining Private Equity’s role from an asset management perspective, the course will focus on PE fundamentals (strategy, economics, stakeholders) as well as on detailing the Leverage Buy-out value chain including the sourcing strategy, due diligence, portfolio value creation and exit. There will be a specific emphasis on teaching the LBO mechanics, core due diligence techniques and value creation strategies.
The course will be complemented by several practical exercises, in class discussions, as well as guest lectures from professionals in the Private Equity Industry.

Learning outcomes
Participants will be able to distinguish Private Equity from other asset classes. In particular, participants understand how to assess and create value from potential investments. Overall, this course will provide participants with practical insights into Private Equity and will equip them with advanced knowledge for a potential career in the industry.

Necessary prerequisites
ACC 510 oder ACC 520 oder ACC 530 oder ACC 540 oder ACC 560 oder ACC/TAX 570

Recommended prerequisites
Basic knowledge of Corporate Finance

Forms of teaching and learningContact hoursIndependent study time
Lecture2 SWS6 SWS
Case Study Presentation2 SWS7 SWS
ECTS credits6
Graded yes
Form of assessmentCase study presentation (50%) and written exam (45 min, 50%)
Restricted admissionno
Further informationWird der Area ACC zugeordnet.
Performing lecturer
Prof. Dr. Wilhelm Schmundt
Dr. Wilhelm Schmundt
Frequency of offeringSpring semester
Duration of module 1 semester
Range of applicationM.Sc. MMM, M.Sc. WiPäd, M.Sc. VWL, M.Sc. Wirt. Inf., LL.M.
Preliminary course work
Program-specific Competency GoalsCG 1, CG 2
LiteratureGole, W. J., and P. J. Hilger (2009): Due Diligence – An M&A Value Creation Approach, Hoboken, NJ u.a. : Wiley. ISBN: 9780470375907.
Course outline– Private Equity – The rise of an asset class
– Private Equity fundamentals
– Private Equity value chain & creation
– Valuation and Leveraged Buyout mechanics
– Commercial Due Diligence
– Value Creation & Portfolio Strategy
– Investment style: Infrastructure
– Sustaining momentum & Exit