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Course module: USEMMA
USEMMA
Mergers and Acquisitions
Course infoSchedule
Course codeUSEMMA
ECTS Credits5
Category / LevelM (Master)
Course typeCourse
Language of instructionEnglish
Offered byFaculty of Law, Economics and Governance; Graduateschool REBO; International Economics and Business;
Contact personR. Valboni, MSc
Lecturers
Contactperson for the course
R. Valboni, MSc
Other courses by this lecturer
Teaching period
3  (03/02/2020 to 19/04/2020)
Teaching period in which the course begins
3
Time slotC: MON-afternoon, TUE-afternoon,THU-morning
Study mode
Full-time
RemarkRequired elective in masters IM, FM & LE. ; Elective in master EP, BF and BDE.
Enrolment periodfrom 28/10/2019 up to and including 24/11/2019
Course application processOsiris
Enrolling through OSIRISYes
Enrolment open to students taking subsidiary coursesNo
Pre-enrolmentNo
Post-registrationYes
Post-registration openfrom 20/01/2020 up to and including 21/01/2020
Waiting listNo
Aims
The learning goal of the course is to familiarize students with:
 
•        Trends and patterns of M&A activity over time;
•        Strategic alternatives to acquisitions;
•        The stages making up the acquisition process and the priorities related to each stage;
•        Different types acquisition strategies available;
•        Most common valuation methodologies;
•        Deal financing: cash vs stock and special financial structures;
•        Seemingly irrational organizational behaviors during takeovers;
•        Different implementation and integration methods;
•        Regulatory approaches to the control of mergers
Content
Please note the prerequisites for this course at the bottom of the course description.

Mergers and acquisitions (M&As) are frequently in the news and a prominent part of daily business in the life of many executives. Yet, most mergers and acquisitions fail from an important economics perspective – the creation of shareholder value – suggesting an apparent merger paradox. On the one hand, the explosive growth in the number, size, and complexity of mergers and acquisitions in recent decades demonstrates how ingrained this kind of business combinations have become in the global business community. The number of acquisitions made by firms worldwide has skyrocketed over the last 20 years: in 2017 alone, companies have spent US$ 3.7 trillion  in acquisitions. Yet, managers often report dissatisfaction with the outcomes of merger deals which is why a significant number are divested or lead to the dissolution of the companies involved. As such, this course focuses on why mergers take place – even while at other times they seem to be totally irrational –, how they can be managed, and what role regulation can play in this form of market restructuring. Next to being an important factor in the economy, M&As also represent a major area in strategic management, finance and organization. Because of this, the course brings together many different disciplines within economics and business that are essential to fully understand, analyze, and manage takeovers.
 
 
Format
The course contains a common part for all students (weeks 1-4) and is then divided into two tracks having different orientations (weeks 5-9). The first track analyzes the M&A process from a strategy perspective looking at the determinants and implications of different strategic decisions throughout the merger process (Strategy track), whereas the second track delves into valuation techniques that enable the acquirer to correctly determine the offer price in an acquisition (Finance track). At the beginning of the course, all students have the chance to learn the basics of both M&A strategy and valuation; then, from mid-course (starting at week 5), students will follow lectures and seminars pertaining to either of the tracks. Students are required to choose the track to follow in the first week of the course.
 
Assessment method
  • M&A planning and valuation report and presentation (40%, group)
  • Final examination (60%, individual)
 
Suggested reading materials:
  • Fundamentals of Corporate Finance (Brealey, Myers, Marcus; ISBN: 9789814670944).
  • Damodaran, A., (2010); The Little Book of Valuation; NYU Sterns School of Business
A more specific guideline on the most important concepts and reading suggestions will be published on blackboard at the beginning of the course. Throughout the course additional materials (for example: excel files or accounting examples) will be made available to help with the valuation assignment.
 
Mandatory course material:
  • DePampilis, D. Mergers and Acquisitions Basics ISBN: 9780123749482) [only for students in the Strategy track]
  • Damodaran, A. Damodaran on valuation: security analysis for investment and corporate finance (2nd edition) (ISBN: 9780471751212) [only for students in the Finance track]
The materials in the book will be complemented with some academic literature that will be provided to the students

Prerequisites
Students are assumed to be familiar with basic finance and accounting principles such as: cash flows, time value of money and discounting. Prior exposure to principles of equity ownership, basic governance and stock markets is also assumed. Suggested reading materials: Fundamentals of Corporate Finance (Brealey, Myers, Marcus; ISBN: 9789814670944).  Damodaran, A., (2010); The Little Book of Valuation; NYU Sterns School of Business. A more specific guideline on the most important concepts and reading suggestions will be published on blackboard at the beginning of the course. Additional effort is required in the case your financial knowledge is limited.

In case online access is required for this course and you are not in the position to buy the access code, you are advised to contact the course coordinator for an alternative solution. Please note that access codes are not re-usable meaning that codes from second hand books do not work, as well as access codes from books with a different ISBN number. Separate or spare codes are usually not available.
Competencies
-
Entry requirements
You must meet the following requirements
  • Enrolled for a degree programme of faculty Faculty of Law, Economics and Governance
Required materials
Book
DePampilis, D. Mergers and Acquisitions Basics [only for students in the Strategy track]
ISBN:9780123749482
Book
Damodaran, A. Damodaran on valuation: security analysis for investment and corporate finance (2nd edition) [only for students in the Finance track]
ISBN:9780471751212
Instructional formats
Lecture

Seminar

Tests
Final test
Test weight60
Minimum grade1

M&A Valuation Report and presentation
Test weight40
Minimum grade1

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