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Unit of study_

FINC6017: Mergers and Acquisitions

Mergers and acquisitions are a fundamental component of the corporate landscape. Through this unit students 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. Where possible this unit integrates learning outcomes in an academic and applied context, and develops an appreciation of the regulatory environment for restructuring transactions and the impact of these regulations on the process and outcomes of restructuring transactions.

Code FINC6017
Academic unit Finance
Credit points 6
Prerequisites:
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FINC5001
Corequisites:
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None
Prohibitions:
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ACCT6011
Assumed knowledge:
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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. Evaluate how and why corporate 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 M&A deal, and determine optimal deal structures. Assess the risks of M&A implementation
  • LO5. Understand 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 clearly and succinctly issues relating to M&A