Field Course: Entrepreneurship through Acquisition
Course Number 6452
Professor Richard S. Ruback
Senior Lecturer Royce Yudkoff
Winter; Q3Q4; 3 credits
Prerequisite: Students must also take the Q1Q2 offering Financial Management of Smaller Firms (1452).
This course teaches specific practical skills that are required to become an effective entrepreneur through acquisition. The course is not a case-based course. It will meet weekly and students will be required to complete assignments on topics relevant to buying a small company such as how to screen potential acquisition targets, the likely types, terms and amounts of debt financing, the typical deal terms and the items open to negotiations, the sources of equity investments, including search funds, private equity partnerships and individual investors. We will also learn about the due diligence process and legal concerns when buying a smaller company. We will have guests in most classes who have practical, hands-on experience.
The course will have practical exercises designed to help entrepreneurs complete their acquisitions. These include pitching to potential equity investors, prospecting for potential targets, seller cold calls and negotiating bank loans.
The seminar is designed for students with a serious interest in buying a small company early in their careers.