Mergers and Acquisitions and LBO
EM3E5M13
Program
PGE
PGE 3A -Finance (FIN)
PGE 3A -Finance (FIN)
UE
International Corporate Finance
Semester
A
Discipline
Finance
Contact hours
12 H
Number of spots
45
Open to visitors
Yes
Language
Coordinator
Ali Özdakak
List of lecturers
| Lecturer(s) | Contact hours - lecture | |
|---|---|---|
| Ali ÖZDAKAK | ali.ozdakak@em-strasbourg.eu | 12 h |
Pedagogical contribution of the course to the program
LEARNING GOAL 1 : Students will master state-of-the-art knowledge and tools in management fields in general, as well as in areas specific to the specialized field of management. |
|---|
| Students will identify a business organization’s operational and managerial challenges in a complex and evolving environment. |
| Students will understand state-of-the-art management concepts and tools and use them appropriately. |
| Students will implement appropriate methodologies to develop appropriate solutions for business issues. |
| LEARNING GOAL 4: Students will study and work effectively in a multicultural and international environment. |
| Students will demonstrate written and oral competency in two foreign languages. |
| Students will analyze business organizations and problems in a multicultural and international environment |
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/debatesOthers
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 toNone 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 - MultiplesNo 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 helpfulTeaching 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 enteredNo 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
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
Written / Individual / English / Weight : 70 %
This evaluation is used to measure LO1.3