Mergers & Acquisitions and Corporate Restructuring

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

 

Course Objective:

 

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

 

Course Outcomes:

 

Course

Learning outcomes (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

MFM 422

Mergers & Acquisitions and Corporate Restructuring

CO 154: Analyze the importance of mergers and acquisitions in the terms of the company’s value.

CO 155: Understand the strategic perspective of Mergers & Acquisition.

CO 156: Evaluate the strategic perspective of Mergers & Acquisitions.

CO 157: Analyze the types of mergers and acquisitions.

CO 158:  Analyze the concept and reasons for takeovers.

CO 159: Acquaint students about corporate valuation in mergers and acquisitions

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

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

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

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

Corporate Valuation

Introduction, Basics of Valuation-Fair Market Value, Fair Value, Book Value, Intrinsic Value, Replacement Value, Liquidation Value,GoingConcernValue,EquityInterestValue,InsurableValue.Objectivesof Valuation, Principles of Business Valuation.

ValuationApproaches–NetAssetValuationModel,PriceEarningRatioModel,Discounted Cash Flow Valuation

12.00
Unit V: 
Takeovers

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: 

Books Recommended:

  • SudarsanamSudi, Creating Value from Mergers and Acquisitions, PHI Learning PrivateLimited, 2/e,2010.
  • Enrique R. Arzac, Valuation for Mergers, Buyouts & Restructuring, Wiley India (P) Ltd.,2009.
  • Chandrashekar Krishna Murthy & S.R Vishwanath, Merger Acquisitions & CorporateRestructuring,SagePublication, 2007.
  • Weston, Takeovers, Restructuring and Corporate Governance, Pearson Education, 2/e,2011.
  • ShivRamu,CorporateGrowththroughMergersandAcquisitions,ResponseBooks,2006.
  • KumarBRajesh,MergersandAcquisitions,Tata McGraw HillEducation,2011.
  • Kavita Shetty, Sharad R. Kale and Rajinder S. Aurora, Mergers and Acquisitions, OxfordUniversityPress, 2011.
  • Gernard Picot, Handbook of International Mergers & Acquisitions, Palgrave PublishersLtd., 2008.

JohnC. Michelson,Restructuring forGrowth, TMH, 2008.

 

Academic Year: 
2021-2022
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