Bihary, Zsolt (Corvinus University of
Budapest)
Optimal financing strategies
A private equity investment
will generally be made by a private equity firm, a venture capital firm or an
angel investor. Each of these categories of investor has its own set of goals,
preferences and investment strategies; however, all provide working capital to
a target company to nurture expansion, new-product development, or
restructuring of the company’s operations, management, or ownership (from
wikipedia article "Private equity"). We will investigate some of
these issues with a simple but realistic quantitative model, the Merton model.
We will explore how a private equity firm can optimize his own, and his
client's expected payoff by bargaining their company shares, using credit
leverage, and option offerings.
Date: Oct. 25, Tuesday 4:15pm
Place: BME, Building „Q”, Room QBF13