The second release of this simulation adds an optional valuation exercise that introduces students to the valuation techniques used in the simulation. In this multi-player simulation, students each play the role of a CEO at 1 of 3 publicly traded wine producers: Bel Vino, Starshine, or International Beverage. Bel Vino and Starshine consider a merger-of-equals transaction while International Beverage considers acquiring either Bel Vino or Starshine. Students review confidential information to determine value and set reservation prices before negotiating deal terms. Stock prices rise and fall in reaction to the formal bidding process and help create a dynamic and competitive negotiation environment. The simulation is entirely web-based and a built-in chat feature allows students to negotiate privately online. The simulation is ideal as a capstone experience in a first-year MBA Finance course, or for use in elective courses in Finance, Negotiation, or Strategy.
Company: Harvard Business Publishing
Approximate price: $15.00
Playtime: 1 hour 30 minutes
Learning objectives: Comparing valuation methods, including WACC-based DCF (Discounted Cash Flow), APV (Adjusted Present Value), and Multiples. Understanding mergers and acquisitions strategy. Negotiating. Selecting target companies. Understanding value creation in an M&A transactions. Differentiating between all-equity transactions and cash deals.
Link to simulation home page: https://hbsp.harvard.edu/product/4805-HTM-ENG