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A 3-day course covering the key concepts needed to understand the financial impact of technology. |
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What you will learn...
Financial Concepts Driving Business Decisions
What are the basic relationships between the income statement, the balance sheet, and the cash flow statement? How can these statements be used for valuation purposes? How do you apply discounted cash flow methods to calculate net present value (NPV) and rate of return? What is "horizon value" and how can it be calculated by the growth-in-perpetuity method? How does growth drive shareholder value at different rates of return?
Valuation of Technology
How does one create a pro forma enterprise model for a R&D project? What is free cash flow? What are some useful simplifying assumptions when hard data is not available? What is sensitivity analysis? How do financially-based valuations compare to market-based measures such as technology licenses and valuations of technology start-ups? How can the option to create second generation products in volatile, growing markets account for extraordinary valuations?
Tools for Managing Risk
Does a risk-weighted hurdle rate make sense? What is decision and risk analysis? How can multiple options to terminate be used to create value in a portfolio? How can the options theory approach improve R&D corporate decision-making?
Portfolio Theory
Why do diversified R&D portfolios add value? How can a dynamic model predict how a R&D portfolio may be expected to drive growth?
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