讲解 36318 LM Alternative Finance讲解 回归

Assignment Remit

Assignment:

The students are to select one non-financial Private Equity (PE)/ Venture Capital (VC) backed IPO company and one non-financial and non-Private Equity (PE)/ Venture Capital (VC) backed IPO company in the US, which went public between 01/01/2012 and 31/12/2018. You are asked to provide a thorough analysis on the following questions:

i) Provide a brief description of the companies’ business, major products, markets, industry sector, founding year, founders, private equity/venture capital providers, any important events like buyouts, acquisitions etc. before the IPO. Also analyse the reason for going public and how the IPO proceeds will be used. The Prospectus can be used to extract this information. (You can also use SEC EDGAR https://www.sec.gov/edgar/searchedgar/companysearch.html) to download IPO prospectus and other filings if they are not available in ThomsonOne.com)

ii) Calculate underpricing on the first trading day (raw and market adjusted returns). Discuss critically the related theories.

iii) Evaluate long-run financial performance of the two companies up to 3 years after the IPO using BHAR, CAR and WR (using a suitable market index as your benchmark). Discuss your results comparing the long-term performance of your chosen companies.

Notes:

The students are allowed to follow their own report structure and introduce new sessions in this assignment in case you believe that will improve the quality/clarity of financing decisions. Use of related Databases such as Compustat and Bloomberg is encouraged.

1. Requirements:

· Your assignment must be word processed, 1.5 spaced and pages should be numbered.

· 2000 words maximum (-5% minimum), (note: the cover page and any tables or graphs in the appendix and the list of references are not included in the word count).

Module Learning Outcomes:

LO1. Understand various financial and ownership aspects of private equity and venture capital investments.

LO2. Understand how firms make initial public offerings and the cost of such offerings.

LO3. Be able to evaluate short- and long-term performance of venture capital-backed companies.

Grading Criteria:

The available marks for each question will be split (approximately) in:  Content: 40% Criticality: 35% Academic support and empirical data employability: 15% Quality of the report presentation, i.e., editing, English writing, referencing style. and the quality of the sources used: 10%.

Feedback to Students:

Both Summative and Formative feedback is given to encourage students to reflect on their learning that feed forward into following assessment tasks. The preparation for all assessment tasks will be supported by formative feedback within the tutorials/seminars. Written feedback is provided as appropriate.  Please be aware to use the browser and not the Canvas App as you may not be able to view all comments.

Plagiarism:

It is your responsibility to ensure that you understand correct referencing practices. You are expected to use appropriate references and keep carefully detailed notes of all your information sources, including any material downloaded from the Internet. It is your responsibility to ensure that you are not vulnerable to any alleged breaches of the assessment regulations. More information is available at https://intranet.birmingh am.ac.uk/as/studentservices/conduct/misconduct/plagiarism/index.aspx.