Mergers & Acquisitions and Corporate Restructuring

Paper Code: 
MFM 422
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objective:

  1. To give an understanding to the students about the corporate restructuring process.
  2. To acquaint the students about the procedures of mergers and acquisitions. 

Course Outcomes:

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

  
 

CO 136: To clarify the importance of mergers and acquisitions in the terms of the company’s value.

CO 137: To understand the strategic perspective of Mergers & Acquisition.

CO 138: To understand the various methods of corporate restructuring.

CO 139: To show the ways of capturing the value drivers through mergers and acquisitions.

CO 140: to understand the basic concept and reasons for takeovers.

 

Approach in teaching:

Interactive Lectures using whiteboards, Discussion, Reading assignments, Demonstration, Team teaching, Quiz.

 

Learning activities for the students:

Self-learning assignments, Effective questions, Solving problems of unsolved questions, Problem based learning-cases, Group learning teamwork, Giving Tasks.

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

  

 

12.00
Unit I: 
Mergers and Acquisition: An Introduction

Meaning and definition of Merger and Acquisition, Motives of Merger and Acquisitions, Stakeholder Expectations in Mergers and Acquisitions, Reasons for buying a Business, Reasons for selling a Business. 

12.00
Unit II: 
Mergers and Acquisitions: A Strategic Perspective

Process of Merger & Acquisition, Concept of Due Diligence, Need for Due Diligence, Parties interested in Due Diligence,  Steps in Due Diligence- Planning Phase, Data Collection Phase, Data Analysis Phase, Concept of Cross- border Acquisitions, Need for Cross- border Acquisitions.

12.00
Unit III: 
Corporate Restructuring

Meaning, Different Methods of Restructuring-Joint Ventures,
Sell Off and Spin Off, Divestitures, Equity Carve Out ,Leveraged Buy Outs (LBO),Management Buy Outs (MBO)

12.00
Unit IV: 
Corporate Valuation

Introduction, Basics of Valuation- Fair Market Value, Fair Value, Book Value, Intrinsic Value, Replacement Value, Liquidation Value, Going Concern Value, Equity Interest Value, Insurable Value. Objectives of Valuation, Principles of Business Valuation.

Valuation Approaches –  Net Asset Valuation Model, Price Earning Ratio Model, Discounted Cash Flow Valuation 

12.00
Unit V: 
Takeovers

Introduction, Friendly and Hostile Takeovers, Reasons for  Takeovers,  Takeover Tactics- Dawn Raid, Bear Hug, Saturday Night Special, Proxy Fight, Takeover Defenses- Divestiture, Crown Jewels, Poison Pill, Greenmail, White Knight, Advantages and Disadvantages of Takeovers.

Essential Readings: 

• 

  •  Sudarsanam Sudi, Creating Value from Mergers and Acquisitions, PHI Learning Private Limited, 2/e, 2010.
  • Enrique R. Arzac, Valuation for Mergers, Buyouts & Restructuring, Wiley India (P) Ltd., 2009.
  • Chandrashekar Krishna Murthy & S.R Vishwanath, Merger Acquisitions & Corporate Restructuring, Sage Publication, 2007.
  • Weston, Takeovers, Restructuring and Corporate Governance, Pearson Education, 2/e, 2011.
  • Shiv Ramu, Corporate Growth through Mergers and Acquisitions, Response Books, 2006.
  • Kumar B Rajesh, Mergers and Acquisitions, Tata McGraw Hill Education, 2011.
  • Kavita Shetty, Sharad R. Kale and Rajinder S. Aurora, Mergers and Acquisitions, Oxford University Press, 2011.
References: 
  • Gernard Picot, Handbook of International Mergers & Acquisitions, Palgrave Publishers Ltd., 2008.
  • John C. Michelson, Restructuring for Growth, TMH, 2008.

 

 

Academic Year: 
2020-2021
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