Summer 2013 EMBA Course

B7345-006: Entrepreneurial Finance & Private Equity

Global Elective Block Week 5, Global Elective: July 2-6 in Hong Kong

Instructor: R. Glenn Hubbard; Michael Keehner; Morten Sorensen

Corequisite(s): B6302


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The course uses a two-pronged approach to the study of entrepreneurial finance.  First, we will analyze principles of corporate finance, valuation, and coordination and control of firms, with an eye toward developing the tools and concepts of entrepreneurial financial management.  Second, we will use cases on firms at different stages of their life cycle to illustrate how these tools and concepts may be applied in practice.  In following these two approaches, we will examine the case dynamics and decisions from the viewpoint of both the entrepreneur and that of the investors to understand their motivations, objectives, and considerations.  Entrepreneurial Finance and Private Equity investing are intrinsically linked.  As an entrepreneur, you cannot negotiate effectively without understanding the investor’s modifications.  As an investor, you cannot evaluate a potential opportunity without appreciating the entrepreneur’s perspective

 

In principle, we can think of a “life cycle” of entrepreneurial financial decisions comprised of stages of identifying opportunity, marshaling resources, executing the business decisions, and “harvesting” success.  In practice, entrepreneurial finance is not a linear process though this life cycle, and most of the cases we examine will necessarily involve considering multiple stages of the life cycle.  As a further dimension, both economists and private equity practitioners describe the need to think simultaneously about four “success factors”: people, opportunity, context, and the deal.  Our case analyses will follow this general framework.

 


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R. Glenn Hubbard

DeanProfessor Hubbard is a specialist in public finance, managerial information and incentive problems in corporate finance, and financial markets and institutions. He has written more than 90 articles and books on corporate finance, investment decisions, banking, energy economics and public policy, including two textbooks, and has co-authored Healthy, Wealthy, & Wise: Five Steps to a Better Health Care System. In a recent book, Tax...

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Michael Keehner

Adjunct ProfessorProfessor Keehner is a seasoned executive and prominent investment banker with global experience, senior management responsibilities and a successful track record. He spent over twenty years of his career with Kidder, Peabody & Co., Incorporated, a full service global investment banking firm where he was a member of the firm's Board of Directors and Executive and Management committees. He left Kidder, Peabody in 1994 and formed a...

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Morten Sorensen

Daniel W. Stanton Associate Professor of BusinessProfessor Sorensen's research focuses on Private Equity, Venture Capital and Entrepreneurship, emphasizing the value created between investors and their portfolio companies. Recent research includes studies of the matching of VC investors and start-ups, the risk and return of entrepreneurial investments, VCs’ learning about industries and technologies, the effects of CEO type on deal success, the effects of PE on innovation, and the recent surge...

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