Topics in Strategic Corporate Finance

In the dynamic real world of corporate finance, the difference between success and failure often hinges on strategic decisions made at the Board or C-suite level. "Topics in Strategic Corporate Finance" is an elective course designed for students who want to familiarize themselves with the key strategic financial decisions that firms are likely to face over their lifetime. These decisions can shape the future of corporations.

The course explores pivotal corporate finance events or decisions a firm is likely to encounter across its lifecycle (Figure 1). Topics covered include various forms of private equity such as venture capital, growth equity, and leveraged buyouts, as well as mergers & acquisitions, corporate restructurings, initial public offerings, public and private debt financing, and distressed situations. Additionally, the course delves into critical decisions surrounding capital structure optimization and payout policies. It's not just about learning the theory; it's about applying it in real-world contexts where the stakes are high and the outcomes are transformative.

Building upon the theoretical tools developed in the core Columbia Business School "Corporate Finance" course, this course aims to provide students with direct, firsthand insights into the mechanics of real corporate finance transactions and deal-making. This includes understanding the parties and decisions involved, the regulatory framework, the application of theoretical corporate finance principles and tools, tactics and processes, as well as engagement with shareholders and other stakeholders.

Lectures are supplemented by experience-based discussions drawing from real-world corporate finance transactions. The course also includes guest contributions by active C-suite executives, senior professionals, and corporate finance practitioners who have led or advised on such transactions. The culmination of this course is an end-of-term small group project. Working in teams, students will apply the concepts and strategies discussed throughout the course to present a novel corporate finance idea. The project provides an opportunity to experience the collaborative and strategic decision-making process that defines successful corporate finance professionals. While most students tend to choose a public M&A idea, they can select from a wide array of transactions discussed during the course.