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Unit of study_

FINC3013: Mergers and Acquisitions

Mergers and acquisitions are a fundamental component of the corporate landscape. Students enrolling in this unit will study the economic and strategic drivers of corporate restructuring activity and their use in the design and analysis of restructuring transactions; evaluate the outcomes from restructuring transactions, both the theory-based explanations and the empirical tests of the theories; learn to identify and value synergies in a restructuring transaction using  several valuation methods; develop a detailed understanding of the design and economic impacts of deal structures used to effect corporate restructuring transactions; and analyse the process of merger arbitrage and its contribution to the outcome of restructuring transactions. This unit will, where possible, integrate learning outcomes in an academic and applied context, and develop an appreciation of the regulatory environment for restructuring transactions and the impact of these regulations on the process and outcomes of restructuring transactions.

Code FINC3013
Academic unit Finance
Credit points 6
Assumed knowledge:
Calculation of free cash flows, trading multiples, discounted cash flow valuation methodology, valuation sensitivities, regression analysis

At the completion of this unit, you should be able to:

  • LO1. Analyse and discuss the strategic role of mergers and acquisitions to corporations in value creation
  • LO2. Describe how and why corporate mergers, acquisitions and restructuring activities are an important part of the efficient operations of financial markets
  • LO3. Examine particular forms of mergers and acquisitions to determine critical aspects of a deal, as well as provide a recommendation to a particular group of stakeholders
  • LO4. Measure and analyse the significance of control premium and synergies, identify and justify likely control premium and synergies in a given corporate mergers and acquisitions deal, and determine optimal deal structures. Assess the risks of mergers and acquisitions implementation
  • LO5. Explain various classes of risk management tools used in M&A and their advantages and weaknesses
  • LO6. Conduct research using archives, libraries, web-sourced data and other sources of information to produce timely and high-quality work
  • LO7. Communicate issues relating to mergers and acquisitions clearly and succinctly.