{"id":1190,"date":"2025-04-20T16:03:23","date_gmt":"2025-04-20T16:03:23","guid":{"rendered":"https:\/\/insightkraft.com\/?p=1190"},"modified":"2025-04-20T17:29:50","modified_gmt":"2025-04-20T17:29:50","slug":"lessons-from-erasmus-universitys-advanced-ma-course","status":"publish","type":"post","link":"https:\/\/insightkraft.com\/index.php\/2025\/04\/20\/lessons-from-erasmus-universitys-advanced-ma-course\/","title":{"rendered":"Lessons from Erasmus University&#8217;s Advanced M&amp;A Course"},"content":{"rendered":"\n<p>I have today completed the Advanced Valuation and Strategy\u2014 M&amp;A, Private Equity, and Venture Capital course offered by Erasmus University Rotterdam on Coursera. I must say that it is one of the most thought-provoking courses I\u2019ve taken in a while. Led by Professor Han Smit, the course covered more than just financial models \u2014 it introduced concepts like real options, game theory, and expanded NPV.<\/p>\n\n\n\n<p>For someone working in FDI and international strategy, this course is incredibly useful for <strong>evaluating growth-stage companies: <\/strong>factoring in strategic flexibility, not just financial projections.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Key Points Discussed<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/insightkraft.com\/index.php\/2025\/04\/20\/lessons-from-erasmus-universitys-advanced-ma-course\/#Key_Concepts_Explored\" >Key Concepts Explored<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/insightkraft.com\/index.php\/2025\/04\/20\/lessons-from-erasmus-universitys-advanced-ma-course\/#1_Real_Options_Theory_Valuing_Flexibility\" >1. Real Options Theory: Valuing Flexibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/insightkraft.com\/index.php\/2025\/04\/20\/lessons-from-erasmus-universitys-advanced-ma-course\/#2_Option_Games_Incorporating_Competitive_Dynamics\" >2. Option Games: Incorporating Competitive Dynamics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/insightkraft.com\/index.php\/2025\/04\/20\/lessons-from-erasmus-universitys-advanced-ma-course\/#3_Valuing_Strategic_Growth_Options_Beyond_Traditional_NPV\" >3. Valuing Strategic Growth Options: Beyond Traditional NPV<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/insightkraft.com\/index.php\/2025\/04\/20\/lessons-from-erasmus-universitys-advanced-ma-course\/#4_Connecting_Strategy_to_Financial_Value\" >4. Connecting Strategy to Financial Value<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/insightkraft.com\/index.php\/2025\/04\/20\/lessons-from-erasmus-universitys-advanced-ma-course\/#Reinforcing_Concepts_through_practice\" >Reinforcing Concepts through practice.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/insightkraft.com\/index.php\/2025\/04\/20\/lessons-from-erasmus-universitys-advanced-ma-course\/#Final_Thoughts\" >Final Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Concepts_Explored\"><\/span><strong>Key Concepts Explored<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The curriculum covered several advanced valuation techniques:<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Real_Options_Theory_Valuing_Flexibility\"><\/span><strong>1. Real Options Theory: Valuing Flexibility<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n\n\n\n<p>Real Options Theory provides a framework for quantifying the value of managerial flexibility within projects and investments. Instead of relying solely on a single expected path, it acknowledges that management can adapt based on future events. This is relevant for decisions such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Investing in R&amp;D may not yield immediate returns, but it has the potential to unlock significant opportunities.<\/li>\n\n\n\n<li>Deciding whether to scale up big or maybe even pull back based on how things are going.<\/li>\n\n\n\n<li>Just strategically waiting to see how the market shakes out before committing fully.<\/li>\n<\/ul>\n\n\n\n<p>The ability to pivot or double down has a real, quantifiable value that a simple DCF might completely miss.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Option_Games_Incorporating_Competitive_Dynamics\"><\/span><strong>2. Option Games: Incorporating Competitive Dynamics<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1536\" height=\"1024\" src=\"https:\/\/insightkraft.com\/wp-content\/uploads\/2025\/04\/option-games-1.png\" alt=\"\" class=\"wp-image-1207\" srcset=\"https:\/\/insightkraft.com\/wp-content\/uploads\/2025\/04\/option-games-1.png 1536w, https:\/\/insightkraft.com\/wp-content\/uploads\/2025\/04\/option-games-1-300x200.png 300w\" sizes=\"auto, (max-width: 1536px) 100vw, 1536px\" \/><\/figure>\n\n\n\n<p>Strategic decisions are rarely made in isolation; competitors&#8217; actions and reactions significantly influence outcomes. The course introduced option games, which integrate real options principles with game theory to model these competitive interactions. Examples where this applies include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Analysing bidding strategies in M&amp;A scenarios.<\/li>\n\n\n\n<li>Evaluating the optimal timing for launching a new product relative to competitors.<\/li>\n<\/ul>\n\n\n\n<p>This highlighted the limitation of evaluating strategic decisions without considering the competitive landscape. Understanding potential responses seems crucial for a more realistic assessment of a strategy&#8217;s potential value and risk.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Valuing_Strategic_Growth_Options_Beyond_Traditional_NPV\"><\/span>3. <strong>Valuing Strategic Growth Options: Beyond Traditional NPV<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n\n\n\n<p>Traditional Net Present Value (NPV) analysis can sometimes undervalue investments, particularly if they create significant future opportunities or offer substantial flexibility. The concept of an &#8216;Expanded NPV&#8217; was discussed as a way to formally incorporate these elements, capturing:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The value derived from potential future growth opportunities enabled by the initial investment.<\/li>\n\n\n\n<li>The financial value associated with operational or strategic flexibility.<\/li>\n\n\n\n<li>Anticipated market reactions to strategic moves.<\/li>\n<\/ul>\n\n\n\n<p>This approach appears particularly relevant for firms with substantial intangible assets or those operating in volatile environments where future strategic choices are a key driver of long-term value.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Connecting_Strategy_to_Financial_Value\"><\/span><strong>4. Connecting Strategy to Financial Value<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n\n\n\n<p>A recurring theme was the direct, quantifiable link between strategic decisions and their impact on financial value. The perspective emphasised that strategic planning should ideally incorporate robust financial modelling to understand the value creation (or destruction) implications of different choices, such as acquisitions, major investments, or even strategic delays.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reinforcing_Concepts_through_practice\"><\/span><strong>Reinforcing Concepts through practice.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Thankfully, we didn&#8217;t just talk about these concepts in theory. We had assignments where we really had to wrestle with it:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trying to value an R&amp;D project using real options logic (harder than it sounds!).<\/li>\n\n\n\n<li>Figuring out whether to expand or contract based on changing market conditions.<\/li>\n\n\n\n<li>Modelling how competitors might behave in an M&amp;A situation.<\/li>\n<\/ul>\n\n\n\n<p>Doing those cases definitely made it all feel less abstract and more like tools you could actually use.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span>Final Thoughts<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Okay, full disclosure: the course was tough. It definitely required putting in the hours. But I came out of it looking at valuation quite differently. It\u2019s like I\u2019ve got a new set of glasses now\u2014ones that see things in a more strategic, flexible, and maybe even <em>realistic<\/em> way.<\/p>\n\n\n\n<p>This course is genuinely worth exploring for anyone working in strategy, private equity, VC, corporate development, or similar fields who wants to move beyond basic valuation and tackle uncertainty and competition. It gave me a lot to chew on.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"791\" src=\"https:\/\/insightkraft.com\/wp-content\/uploads\/2025\/04\/advanced-MA-pdf-1024x791.jpg\" alt=\"\" class=\"wp-image-1193\"\/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>I have today completed the Advanced Valuation and Strategy\u2014 M&amp;A, Private Equity, and Venture Capital course offered by Erasmus University Rotterdam on Coursera. I must say that it is one of the most thought-provoking courses I\u2019ve taken in a while. Led by Professor Han Smit, the course covered more than just financial models \u2014 it [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,20],"tags":[],"class_list":["post-1190","post","type-post","status-publish","format-standard","hentry","category-personal","category-skillsup"],"views":252,"_links":{"self":[{"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/posts\/1190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/comments?post=1190"}],"version-history":[{"count":16,"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/posts\/1190\/revisions"}],"predecessor-version":[{"id":1211,"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/posts\/1190\/revisions\/1211"}],"wp:attachment":[{"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/media?parent=1190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/categories?post=1190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insightkraft.com\/index.php\/wp-json\/wp\/v2\/tags?post=1190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}