FINANCE ELECTIVE

MERGER & ACQUISITIONS

COURSE DURATION: 3 HRS PER WEEK FOR 10 WEEKS

COURSE CREDITS: 3

1. FORMS OF BUSINESS ALLIANCES (6 HRS)

• Strategic choice of type of business alliance
• Merger and acquisition and take-over
• Introduction to restructuring problems; types of mergers; reasons for M & A; vertical, horizontal,
conglomerate, concentric mergers.
• History of mergers – the first to the fourth wave and causes thereof.
• The strategic Process – Theories of mergers and tender offering – financial synergy and managerial
synergy.

2. DEFINING AND SELECTING TARGET (4 HRS)

• Pricing of mergers (Pricing the competitive bid for take- over)
• Negotiation/approach for merger
• Acquisition and take – over contracting; implementation of M & A; managing post-merger issues

3. VALUING FIRMS AND THE DIFFERENT METHODS OF VALUATION (6 HRS)

• Product life cycle effect on valuation.
• Corporate and financial restructuring
• Divestiture – Mechanism, process and techniques legalities involved in M & A and take-over
• Ethical issues of merger and take-over

4. ACCOUNTING FOR MERGERS (4 HRS)

• Financing the mergers and Take-overs
• Corporate restructuring divestment and abandonment

5. JOINT VENTURE AND ALLIANCES (6 HRS)

• Leveraged buyout
• Share repurchase.
• Takeover defences
• International take over and restructuring
• The M & A process
• Implementation and management guides for Mergers & Acquisitions.

6. LEGAL ASPECTS OF M&A (4 HRS)

• Legal aspects of mergers/amalgamation and acquisition; provisions of Companies Act; SEBI regulation;
Takeover Code; schemes of amalgamation; court approvals

Note: The subject will be taught with the help of case studies from the Indian corporate world.

BASIC TEXTS
• Mergers, Acquisition & Corporate Restructuring (by) Caughan (John Wiley)
• Creating Value from M&A (by) Sudi Sudersanam (Pearson)