About Us

MSc Corporate Finance

Date: 27 September, 2011  Page Author: André Mansi

NEWS: We are delighted to announce that the NDRCTC will be granting our MSc Corporate Finance students a partial exemption from their CFC qualification (see below for more information).

This degree offers students understanding of a wide range of corporate finance services and corporate transactions businesses face.

Through hands-on sessions and extensive use of case studies, students will be fascinated by the exciting world of venture capital, private equity, corporate governance and mergers and acquisitions. Students will develop the necessities in the areas of investment and capital budgeting decisions, IPOs, dividend policy and capital structure, enterprise valuation and risk management.

Entry Requirements

Entry requirements

Undergraduate Degree
 Minimum 2:1 or the equivalent from an overseas institution*.
Degree Discipline
 Any degree discipline, but must have a satisfactory existing level of numeracy.
GMAT
 We may ask you to submit a GMAT score if we think it appropriate in your individual case. For example, if you have been out of education for more than a few years or have little evidence of any numerical ability.For information on the GMAT and the location of test centres worldwide, please visitwww.mba.com

* Please note that due to increasing competition for places on our Masters programmes our entry requirements may change.

We operate a rolling admissions system and you are therefore advised to apply early in order to be sure of your place on our programmes. We are experiencing high levels of demand for 2012 entry, and it is possible we will have to close applications to some programmes once places are filled.

English requirements

Proficiency required for International students enrolling in this degree for entry in September 2012 are:

TOEFL (Test of English as a foreign language): Overall score of 88 for the internet based test, with no less than 22 in Reading, 21 in Listening, 23 in Speaking and 21 in Writing.

IELTS (British Council International English Language Test): Score of 6.5 overall with no component in the test less than 6.0.

 

Proficiency required for international students enrolling in this degree for entry in September 2013 will be:

TOEFL (Test of English as a foreign language): Overall score of 100 for the internet based test, with no less than 22 in Reading, 21 in Listening, 23 in Speaking and 21 in Writing.

IELTS (British Council International English Language Test): Score of 7.0 overall with no component in the test less than 6.5.

 

Contact

For more details, contact Kim Mountford, Admissions Officer, at k.mountford@icmacentre.ac.uk

Fees

Fees 2012-13

Full-time Flexible Learning Distance Learning
Msc Corporate Finance £18,000 £17,000 £15,000

Fees are the same for both EU and overseas students.

Fee structure for the flexible and distance learning programmes is for the length of the entire programme (ie 18 months or 24 months respectively)

Living expenses are in addition to the above fees. Overseas full-time participants can expect to spend approximately £9,400 on additional living expenses during the course of their studies. Home/EU full-time participants can expect to spend approximately £8,000 on additional living expenses during the course of their studies. Flexible participants can expect to spend approximately £5,000 during their part 2 studies.

How to apply

Full-Time MSc Applications

Applications closed for 2011 entry:

Applications for 2012 entry are open for all programmes.

The ICMA Centre operates on a rolling admissions basis, meaning that prospective students can apply for our programmes throughout the year, however we do advise to apply early in the year. We aim to return a decision within 4-6 weeks of receiving your application.

Full-time applicants can apply online or download our application form and complete it by hand.

Flexible and Distance Learning Applications

We accept online applications only for flexible and distance learning.

Applications closed for all flexible and distance learning programmes for 2011 entry. Applications are open for 2012 entry.

Learning options

Learning Options

Please refer to the page on learning options for details on how this programme is delivered.

Full-time:  9 months
Flexible:    18 months
Distance:   24 months

FAQs

Do I need to take GMAT?

If you are unsure as to the need to take GMAT (Graduate Management Admissions Test), please apply without taking it. We will advise in the form of a conditional offer if we think that it is necessary for you to take it. Obtaining a good score of 600 or above and a good score in the quantitative section of the test can support your case at the Admissions Committee. The GMAT is not a mandatory requirement for applications to the MSc programme, but can enhance an application. More information about the GMAT can be obtained at www.mba.com.

When is the deadline for applications?

There is no fixed deadline for full-time applications. However, you are advised to apply early, as the admission process can take up to 4-6 weeks to complete. Places become very limited from June onwards. You are encouraged to telephone the Centre after that date to clarify the situation.

Deadline for Flexible and Distance Learning applications: Friday 10 August 2012.

How long will it take to receive an answer to my application?

The admissions process will take up to 4-6 weeks from receipt of a completed application. We will endeavour to process your application sooner, however, the delay is normally due to outstanding supporting documents.

My referee has sent his reference direct, is this OK?

Yes. We keep all references and match them with applications when they are received.

Who decides on the suitability of an application?

Each application is considered by the Admissions Committee, made up of academic members of staff and the Admissions Officer.

How do I pay the £1000 deposit and when is the deadline?

By Sterling cheque payable to the University of Reading by credit card or bank transfer.

Applicants accepted on to an ICMA Centre MSc programme should pay their deposit by the deadline indicated in the  recommendation e-mail from the ICMA Centre.

Where do I send my information proving that I have fulfilled my conditions?

Send this information to the Postgraduate Admission Office, the ICMA Centre will be automatically updated. Their full address is:

Postgraduate Admissions Office
Henley Business School
University of Reading
Whiteknights
PO Box 218
Reading
RG6 6AA

Am I qualified to do this programme?

We can only give a considered answer to this question if we have received a completed application form and supporting documents. Without this information it is difficult to make any evaluation of your previous qualifications.

To whom should I address any queries about my application?

All queries should be addressed to the Admissions Team: admissions@icmacentre.ac.uk.

Does the ICMA Centre provide funding? If not, how do I fund the programme?

A range of scholarship awards are available. Please refer to the ICMA Centre Scholarships pages for further details.

How do I arrange accommodation?

All enquiries concerning accommodation should be directed to Student Services, telephone number +44 (0)118 378 5555.

Additional information

Careers

Careers Information

The financial services sector has an ever-expanding need for graduates trained in the fundamentals of compliance, governance and regulation. This increasing demand has been fuelled by implementation of a number and rules and laws, including the EU Market Abuse Directive, Markets in Financial Instruments (MiFID), global standards such as Basel II, and the FSA and US regulatgors’ focus on principles-based regulation, all of which require significant in-house compliance resources.

With recent explosive growth in capital markets such as China,India, the Middle East and Eastern Europe, combined with the increasing complexity of financial products and a growing sophistication on the part of investors and market participants, there are immense challenges facing institutions, compliance professionals within them and regulators.

Our graduates are in a very strong position to build successful careers in the compliance or legal divisions of investment banks, fund managers and hedge funds, retail banking institutions and other market participants.

There is also a possibility of an industry internship during the degree.

For more information regarding graduate destinations, please visit www.icmacentre.ac.uk/careers.

Professional Development and Accreditation

ICMA International Fixed Income and Derivatives (IFID) Certificate

Students who successfully complete this degree including the module International Securities Markets will be granted this certificate.

CISI Diploma

Students are eligible for full exemption from this qualification.

CISI Certificate in Corporate Finance

Students are eligible for exemption from paper 2.

NDRCTC CFC Certificate

Students are eligible for exemption from the Corporate Investment exam. This will apply to graduates from 2011 entry onwards. (The CFC qualification comprises 3 exams: Overview and fundamentals of corporate finance; Corporate investment; Corporate financing)

Module listing and descriptions

NB. All our Masters degrees comprise a total of 180 credits: 80 credits at Part One and 100 credits at Part Two. Please note that module titles or content may vary each year.

Part 1 Modules

Part 1 Modules

Securities, Futures and Options

Module convenor: Professor Chris Brooks20 credits

Introduces techniques for analysing and valuing different classes of risky assets. It also develops ways of optimally selecting portfolios of such assets and develops models of how these portfolios may be priced in financial markets. The techniques introduced in this module are widely applied in other elements of the programme. Outline: Financial assets and investing in securities markets; Investors and their objectives; Risk and capital allocation; Optimal portfolio selection; Capital asset pricing model; Single index and multifactor models; Arbitrage pricing theory; Derivative securities and the no-arbitrage principle; Forwards and Futures contracts; Simple hedging; Options basic properties and trading strategies.

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Fixed Income and Equity Investments

Module convenors: Dr George Alexandridis  | John Evans  | 20 credits

Fixed Income and Equity Investments deals with the valuation of fixed income and equity securities. The module focuses on the basic characteristics of each security and the strategies used for approximating their fundamental value and assessing their risk. Its primary aim is to discuss how certain characteristics and relationships can affect the value of fixed income and equity securities and how can they be exploited to form optimal investment strategies. The analytical techniques introduced in this module are widely applied in other elements of the programme. Outline: An introduction to securities,  Applying time-value-of-money (TVM) and probability theory to value financial instruments,  Bond prices and yields, Introduction to default risk, Term Structure of Interest Rates, Interest rate risk, Active Bond Management,  Economic and Industry analysis, Financial Statement Analysis, Equity Valuation, Behavioural Finance and Technical analysis  

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Quantitative Methods for Finance

Module convenor: Professor Carol Alexander20 credits

The objective of the module is to give students a thorough grounding in the essential mathematical methods used in finance, including basic principles of calculus, linear algebra, statistics, probability and regression. Students apply these skills to the fundamental problems in finance, such as compounding interest, pricing and hedging options, portfolio volatility, portfolio beta and simulation. The theory is illustrated by numerous examples and Excel spreadsheets.. The very high practical content will make it accessible to all students, even those with little previous training in mathematics.

Outline Content

  • Foundation
  • Descriptive Statistic
  • Calculus
  • Linear Algebra
  • Probability Theory in Finance
  • Regression
  • Numerical Methods

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Financial Analysis

Module convenor: John Evans20 credits

Financial Analysis provides a comprehensive study of ?top-down' fundamental analysis and then allows one to take this framework and apply it to the valuation of financial securities.  The first part of the course takes the student through macro-economics, micro-economics, industry analysis, financial statement analysis and the second part of the course focuses on financial statement analysis and then looks to apply this framework to the corporate valuation decision.  The final objective is to bring together these various disciplines into a single framework for analysis. The analytical techniques taught in this course are very applied, to allow the successful candidates to apply directly to industry either the analysis section (as an equity analyst would do) or the usage of the relative value results as a fund manager or trader would do.

Outline content

Introduction and overview of the framework, and Markets and government
  • Aggregate demand, fiscal and monetary policy
  • Consumer demand and competitive markets
  • Industry analysis and regulation
  • The accrual concept and cash flows
  • Current assets and inventories
  • Long term assets
  • Long term finance
  • Business investments and combinations
  • Pensions and derivatives
  • Research project with presentation to class

Part 2 Modules (Compulsory)

Corporate Financial Management

Module convenor: Dr Carol Padgett10 credits

Corporate financial management deals with the long-term financial decisions that corporations make and the tools and analysis used to make these decisions. The objective of the module is to introduce students to the main financial decisions taken by corporations, examining how those decisions influence the market's valuation of companies.

Outline: The corporate form and initial public offerings, Valuation: management and measurement of value, Capital budgeting: decisions on fixed assets, Treasury function 1: working capital management and risk management, Treasury function 2: new issues, Treasury function 3: capital structure continued, Dividend policy: dividends and share repurchases.

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Part 2 Modules (Optional)

Choice of 40 credits from:

Corporate Governance and Accountability

Module convenor: Dr Carol Padgett20 credits

The objective of the module is to introduce students to the concept of corporate governance, to explain how governance varies around the world and to explore the potential and actual relationships between corporate governance and performance. By the end of the module it is expected that students will be able to:
  • Appreciate how a range of internal and external governance mechanisms may substitute for one another
  • Compare governance regimes around the world
  • Understand the issues involved in empirical testing of the relationship between governance and performance
 

Outline content

  • Internal and external governance mechanisms
  • Shareholders
  • Stakeholders
  • The board of directors
  • Remuneration
  • The market for corporate control
  • Regulation
  • Communication and financial transparency
  • Governance in emerging markets

Enterprise Valuation

Module convenor: Dr Carol Padgett10 credits

The objective of the module is to use case studies to give students the opportunity to analyse how key corporate decisions affect value. By the end of the module it is expected that students will be able to: Use publicly available data to
  • Calculate the weighted average cost of capital
  • Calculate free cash flow
  • Calculate economic profit
Students will then be able to use these data to value new and existing companies and assess the impact of policy changes on value.

Outline content

  • Economic profit analysis
  • The impact of capital structure changes on value
  • Dividend policy, share repurchases and value
  • Project-specific risk
  • IPO pricing

Mergers and Acquisitions

Module convenor: Dr Simone Varotto10 credits

The objective of the module is to introduce students to the technical and practical aspects of M&A deals. In lectures we shall explore (1) several corporate valuation methods (2) how to identify and value synergies and (3) how to finance an acquisition. Selected case studies will help students become familiar with the practical aspects of the deal making process.

What makes a mergers successful and what does not, SWOT analysis and other strategic tools, Bidder and target valuation: DCF, APV, P/E, Book value and similar transactions' multiples, Sensitivity analysis and triangulation, Synergies, Cash, stock and mix financing, Impact of financing methods on valuation, Payment methods, Decision rules, Takeover, Defences: poison pills, staggered boards, supermajority, Legal aspects of M&A in Europe, Cross-border mergers, Valuation issues, Mergers and corporate governance

Strategic Planning and Budgeting

Module convenor: TBC10 credits

In order to raise capital from financiers or secure funding via government grants it is always necessary to produce a robust financial plan. This plan will then be used as a yardstick by all parties to monitor the performance of the business. Typically a detailed twelve month plan is required in addition to a summary level five year plan. Typically these plans will include comprehensive sections on revenue forecasts, profit and loss, cash flows, balance sheet, capex, financing and a commentary with further detail to help explain the figures. The aim of the module is to introduce students to the practicalities of developing and utilising financial models with a view to achieving the overall strategic objectives of an organisation. Students will also gain a thorough understanding of the interaction between the separate statements within a financial model.

Outline: The components of organisational strategy, the need for Strategic Planning and Budgeting and the role it serves for different parties, The statements contained within a financial model and the interaction between those statements, Banking covenants and aiding compliance, Planning as an aid to identify potential cash shortfalls and mitigate future uncertainties, Links between long term and short term borrowings, Initial detail required to commence the preparation of a financial plan, Revenue and expenditure planning, Working capital modelling and integration, Capital expenditure cycle and integration, Management support and incentivisation, Plan development for twelve month and five year time frames, Sources of information, Plan monitoring, Rolling forecasts and amendments to the model, Whole business monitoring versus project modelling

Venture Capital

Module convenor: Keith Arundale10 credits

The objective of the module is to develop studentsÂ’ appreciation of the practical aspects of raising venture capital finance for a private company, working with the venture capital investor in growing the business and achieving a successful exit. The focus of the module is on venture capital and high-growth ventures from the viewpoints of both the entrepreneur or management team and of the investing institution (general partner), although private equity as a whole is covered as well as the relationship between the private equity or venture capital firm and its own investors (limited partner institutions). Extensive use will be made of case studies and a business plan project in addition to guest lectures from invited experienced practitioners. By the end of the module it is expected that students will be able to:
  • Understand the real world processes involved ,and issues, in raising venture capital finance
  • Be aware of other sources of finance, such as business angels, government sources and bank debt.
  • Understand the current issues and challenges facing the venture capital industry and how the industry is structured
  • Be able to prepare a business plan for the purpose of raising finance for an early-stage or expansion proposition
  • Understand the investment process and how venture capital firms appraise, structure and monitor their deals
  • Be able to negotiate a term sheet and final shareholders agreement
  • Understand how the venture capital firm aims to add value to the investment
  • Be conversant with the various exit routes and how venture capital firms make a return on their investments.
 

Outline Content

  • Sources of finance, including working capital management, bank debt, mezzanine, government initiatives (including ECFs and VCTs), business angels, venture capital and private equity
  • Structure and management of venture capital firms, including limited liability partnerships and the fund raising process
  • Trends and issues in the global and European venture capital marketplace
  • Business planning process, incl USPs, SWOT analysis, market and risk analysis, financial scenarios
  • Selecting and approaching venture capital firms, including stage and sector focus, and review of current "hot" sectors for investment. Specific issues with regard to corporate venturing and university spin-outs.
  • Venture capital investment process, including financial, commercial and technical due diligence, arriving at the equity stake, terms sheets, negotiations, structuring the deal,
  • Management buyouts, including routes to added value, leveraged deals, types of debt, structuring the buyout
  • Tax and legal issues, including the shareholderÂ’s agreement, warranties and indemnities
  • Monitoring the investment
  • Valuation of investments in early stage companies
  • Exit routes, including IPOs and trade sales.

Plus a choice of up to 40 credits may be chosen from the ICMA Centre annual list of Part 2 optional modules.

Come and see us

Why not make an appointment to come and visit. You can chat with our Admissions and Careers teams and a member of academic staff. Email admissions@icmacentre.ac.uk or call +44 (0)118 378 8239.

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