Mergers and Acquisitions and LBO

EM3E5M13

Semester
A
Discipline
Finance
Contact hours
12 H
Number of spots
45
Open to visitors
Yes
Language
Coordinator
Ali ÖZDAKAK


Pedagogical contribution of the course to the program

No educational contribution associated with this course for this program.

Description

Mergers & acquisitions (M&A) are making headlines again. After a substantial drop in takeover activity during the financial crisis, the global M&A market reached new heights in 2021 - with announced deal values totaling $4,562 billion. The objective of this course is to provide participants general knowledge on M&A from a corporate finance perspective. After successful completion of the course, students will have a solid understanding of the most fundamental issues and concepts in the M&A field. Without being exhaustive, the following topics will be covered during the course: Reasons for companies to enter the M&A market, takeover motivation theories, wealth effects for acquirer and target shareholders, the takeover process, business valuation, merger arbitrage, and leveraged buyout transactions. The course will also adopt a practitioner’s point of view and layout real-life examples of valuation techniques and tools. Bridging the gap between research and practice, this course is ideal for those interested in M&As and/or willing to work in the M&A industry. No special knowledge of mergers & acquisitions is required, however general corporate finance know-how and some financial calculation skills (in Excel) would be helpful.

Teaching methods

Face-to-face

- Lectures
- Tutorials

In group


- Projects
- Case studies/texts

Interaction

- Discussions/debates

Others

No items in this list have been checked.

Learning objectives

Cognitive domain

Upon completion of this course, students should be able to
  • - (level 1) name theories and reasons for companies to do takeovers
  • - (level 2) elaborate on the typical takeover process
  • - (level 3) demonstrate a deep understanding of the main valuation techniques
  • - (level 4) figure out the particularities of LBOs to other forms of takeovers
  • - (level 5) determine wealth effects for acquirer and target shareholder
  • - (level 6) formulate merger arbitrage strategies

Affective domain

Upon completion of this course, students should be able to
None affective domain have been associated with this course yet

Outline

1. The M&A environment - Terminologies - Merger waves 2. Merger reasons - Reasons advanced by firms - Merger motivation theories 3. Shareholder wealth effects - Events studies - Deal announcement returns - Freerider problem and merger arbitrage 4. Takeover process - Trade sale - Buyout 5. Business valuation - DCF - Multiples

No prerequisite has been provided

Knowledge in / Key concepts to master

- Basic corporate finance know-how - Key concepts: NPV, WACC, basic accounting, arbitrage - Calculation skills (in Excel) are helpful

Teaching material

Mandatory tools for the course

- Computer
- Calculator

Documents in all formats

- Photocopies
- Case studies/texts
- Worksheets

Moodle platform

- Upload of class documents
- Interface to submit coursework
- Assessments

Software

No items in this list have been checked.

Additional electronic platforms

No items in this list have been checked.

Recommended reading


Berk and deMarzo, Corporate Finance, Pearson More reading sources will be provided in class


No reading material has been provided.

EM Research: Be sure to mobilize at least one resource

Textbooks, case studies, translated material, etc. can be entered
No reading material has been provided.

Assessment

List of assessment methods

Intermediate assessment / continuous assessment 1Other (date, pop quiz, etc.) : The exact date will be announced at the beginning of the course
Written / Group / English / Weight : 30 %
Details : Written examination on an M&A paper
This evaluation is used to measure LO1.1, LO1.2, LO1.3
Final evaluationExam week
Written / Individual / English / Weight : 70 %
This evaluation is used to measure LO1.3
No assessment methods have been attributed to this course yet.