program is designed to enhance and systematize the knowledge of
experienced financial managers in VALUE-BASED MANAGEMENT.
management thinking views shareholder wealth maximization (increasing the
market value of the firm) as the primary goal of decision making. To
increase value, managers must understand the sources of value, how to
increase value in the various decision making areas that comprise
financial management and the best techniques to measure it. This program
is aimed at helping financial managers do all this:
the sources of value;
different valuation techniques;
how to apply these tools and methods in practice.
the program emphasizes the integration of a company's business and
modules deal with a number of financial topics in detail. These include
traditional areas of finance (financial planning, investing and financing
decisions, risk and return, etc.) as well as more contemporary ones (how
information technology affects strategy implementation, risk management,
value based performance evaluation, etc.)
program is systematic and integrated. Topics are arranged into logical
modules. Interconnections among the topics are demonstrated throughout the
program as well as the importance of each topic for enhancing firm value.
Modules build on preceding topics where appropriate and allow participants
to explore complex topics sequentially, without repeating material already
are expected to have at least an intermediate level of knowledge and
experience in finance. They will form teams to analyze case studies and
program is organized into ten two-day modules, or twenty days altogether.
The studies are carried out over ten months (a two-day module each month).
Program length is 160 academic hours, plus independent study
with a bachelor's degree have the opportunity to apply for 10 credit
points in the EBS Executive Master of Business Administration (EMBA)
program. In order to acquire the credit points, it is necessary to
complete and submit for review five homework activities (case analysis,
essay questions and problem solutions) and pass a comprehensive final
INTRODUCTION TO THE PROGRAM / ORGANIZATIONAL
Hammer and Mari Avarmaa / Tiit Elenurm
and goals of the program: the nature of corporate finance, the
goal of financial management, new theories etc: introduction to
elements of strategy: mission, vision, competitive advantage, core
impact of the changing environment on strategic choices.
Developing and clarifying strategy. Using teamwork and expertise
in strategic planning
role of representatives of different functional areas in creating
and implementing strategy
Ethics and organizational co-operation
TEAMWORK/ ACCOUNTING VS. FINANCE
Virovere / Heidi Seeland , Enn Listra
I: Teamwork. The role of an individual, teamwork and
organizational culture-the basis for successful strategic
II: Accounting vs. Finance. The role of financial and managerial
accounting in implementing the strategy of the corporation 1.5 h
theories and trends in financial and managerial accounting (ABC
etc) 3 h
vs. Finance 1.5 h
FINANCIAL PLANNING / IT IN IMPLEMENTING THE (FINANCIAL)
Pajula, Toomas Reisenbuk, Heidi Seeland/ Toomas Veersoo, Ivo Suursoo
I: Financial planning Global background: Economy in Estonia and
elsewhere. Macroeconomic factors to
into long-term plans: the growth of the economy, inflation,
case study of a company. Sales plan, investments plan, cash flows
II: IT in implementing the (financial) strategy. Business strategy
and processes: implementing a compatible IT
planning and management with the help of IT: maximize the benefit
Oja, Laire Puhmaste, Kristel Kivinurm, Toomas
value of money (quick overview)
of stocks, bonds, derivatives
theory and making investment decisions.
possibilities in Estonia, Baltics and elsewhere
Hammer, Mari Avarmaa, Enn Listra, Tõnu Pekk, Jason
strategy and investments. NPV and other investment criteria.
cash flows. A case study.
analysis, sensitivity analysis, Monte Carlo, decision trees,
Pekk, Wade Stokes, Rain Tamm, Alo Lillepea, Ivo
of capital. Optimal capital structure (MM and
of debt capital: bonds, loans from bank,
of equity capital: venture capital, IPOs, etc
SHORT-TERM FINANCIAL MANAGEMENT
A. Hachey & Anthony Cefalo
and Assessing a Firm's Liquidity
Accounts Receivables, Inventory and Accounts Payable to Unlock
Term Financing Strategies
Listra, Ivo Karilaid, Henn Oit, Martti Singi
of risk and types of risk. Risk management and the value of a
at the project, at the company, at the industry, and at
of risks, risk management methods and means, and interactions with
other management techniques.
risks. Diversification and hedging, derivative
risks. Internal control mehthods. Transfer of risks. Insurance.
VALUATION OF A COMPANY / PERFORMANCE
Tiivas, Jason Grenfell-Gardner, Ivo Suursoo, Madis
valuation models (DCF, EVA, relative models, Balanced Scorecard).
Value-based management. Strategy as a portfolio of real options.
of companies in practice from the viewpoint of internal and
external stakeholders--a case study.
as performance evaluation tool: overview and case
performance evaluation methods
MERGERS AND AQUISITONS AND LEVERAGED BUY-OUTS / COMPREHENSIVE CASE
Habakuk / Hachey & Wiggins, Avarmaa,
and aquisitions, leveraged buy-outs and other strategic
comprehensive case: presentations, negotiations and discussion.
of the program and conclusions.
I : After
a: Problems on time value of money, stock and bond
b: Essay “Macroeconomic factors that influence my company in the coming 5
: After module VI
study: Valuation of a concrete project of your own
After module VII
for a more effective short-term financial management in your
After modul IX
preparing the case under discussion in last module + writing the
V: After module X
problems (to help prepare for the exam)