Слияния и поглощения

Магистратура 2020/2021

Статус: Курс по выбору (Финансы)

Направление: 38.04.08. Финансы и кредит

Кто читает: Департамент экономики и финансов

Где читается: Факультет экономики, менеджмента и бизнес-информатики

Когда читается: 2-й курс, 2 модуль

Формат изучения: с онлайн-курсом

Преподаватели: Завертяева Марина Александровна

Прогр. обучения: Финансы

Язык: английский

Кредиты: 3

Контактные часы: 2

Full Syllabus Ask Question

Abstract

The area of mergers and acquisitions (M&As) is special in finance. Incredible amounts of money are employed in such transactions. Deals draw a lot of public attention and dispute. Oftentimes, stories look more like fairy tales rather than financial reality. The key idea in any M&A transaction is to create value through a potentially synergetic activity. To this end, it is important to have a clear motive and implementation plan. Of special importance are the correct valuation, proper financing, and actual deal completion. But this is not the end – value mostly accrues from the post-merger integration. The understanding of the motives of various stakeholders is instrumental in the analysis of the potential creation of value.

Learning Objectives

gain insight into the core value creating M&A strategies
to calculate the effect from M&A

Expected Learning Outcomes

To clarify the importance of mergers and acquisitions in the terms of the company’s value
To achieve skills in evaluation of target companies and the deals’ value
To show the ways of capturing the value drivers through mergers and acquisitions
To find the ways of value growth through integration of merging companies
To understand sources of funding for mergers and acquisitions
o give some ideas about the defense strategies in the cases of the hostile takeovers attempts

Course Contents

Stakeholders, Framework and Process. Legal and Regulatory Environment. Accounting and Tax Issues an Overview
We paint the big picture of the M&A field. We identify the value creation as the key motive behind these deals. In order to analyze the value creation process, we introduce the stakeholders’ approach and study stakeholders’ motives in some detail. Then we discuss the idea of synergy as the core objective of a successful M&A transaction and its pitfalls. We introduce the framework and process of M&As and discuss the overall environment of these transactions – legal and regulatory issues (especially, antitrust motives), accounting treatment of M&As, and some important tax considerations. We will see how the transaction environment and treatment influence the potential of successful implementation of a transaction and the corresponding value creation.
Strategy and M&As. Theories of M&As
We discuss corporate strategy and its role in value creation. We revisit some well-known schools of strategic thinking and frameworks of strategy formulation and implementation. Our objective is to understand strategic motives behind M&A transactions. Equipped with the overall understanding of strategy, we proceed with the discussion of major theories of M&As – the motives behind the planned transactions that have the value creation potential. In all theories we try to reveal the actual interests of the key stakeholders. Finally, we study the actual deal mechanics and ways to overcome incumbent shareholder resistance (the free-rider problem).
Valuation of M&As
We start with the analysis of the importance of valuation in the potential value creation. Then we discuss and compare alternative approaches to valuation, paying special attention to free cash flow (FCF) valuation. We analyze major value drivers – profitability, growth, cost of capital etc. and derive general valuation formulas for special cases of no growth, constant and supernormal growth. Then we apply the formulas to analyze value gains/losses in M&A transactions on examples.
M&A Financing. LBOs and MBOs
Motives, theories, and deal mechanics are fine – but where’s the money? If a transaction is friendly, a stock payment is likely to help. But what if there’s a conflict? Then a lot of cash is needed, and a lot of debt must be issued. One way is issuing junk bonds. We discuss both facts and myths about junk bonds. Then we consider LBO and MBO transactions. First, we analyze how a company may be taken private through heavy borrowing and further gradual debt repayment. We illustrate the mechanics of an LBO/MBO transaction on a detailed example. Finally, comments on a famous LBO case – RJR Nabisco – are provided.

Assessment Elements

Самостоятельная работа
Описание реальной ситуации сделки слияния и поглощения в форме эссе с проведением оценки стоимости сделки
Тест

Interim Assessment

Interim assessment (2 module)
0.3 * Самостоятельная работа + 0.7 * Тест

Bibliography

Recommended Core Bibliography

Advances in Mergers and Acquisitions Cooper, Cary L.; Finkelstein, Sydney Emerald Publishing Limited 2015 ISBN: ISBN number:9781785600913, ISBN number:9781785600906 SERIES: Advances in Mergers and Acquisitions Ser.

Recommended Additional Bibliography

Faulkner, D., Teerikangas, S., & Joseph, R. J. (2012). The Handbook of Mergers and Acquisitions (Vol. First edition). Oxford: OUP Oxford. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=2245641
Rosenbaum, J., & Pearl, J. (2013). Investment Banking : Valuation, Leveraged Buyouts, and Mergers and Acquisitions (Vol. 2nd ed). Hoboken: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=981384
Understanding mergers and acquisitions in the 21st century: A multidisciplinary approach. (2012). Palgrave MacMillan. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsnar&AN=edsnar.oai.pure.rug.nl.publications.59fa58cd.2a0f.4df7.955b.9bbbf5da2625

Course Syllabus