T. A.

PAI MANAGEMENT INSTITUTE (TAPMI), MANIPAL

MERGERS AND ACQUISITIONS

Programme: PGDM
Batch: 2020-2022
Term: 6
Course Name: Mergers and Acquisitions-FIN 6016
Credits: 2 (20 Hours)
Course Instructors: Prof. Rajiv Shah (Core), Prof Gurudutt Nayak (Core) and Prof Animesh Bahadur
(Core)

PART 1
INTRODUCTION
This course focuses on the strategic, financial, legal and stakeholder aspects in mergers and acquisitions.
The course comprises of modules on exploring and responding for inorganic growth routes, value drivers
and target valuation, deal structure and transaction closure, legal, accounting and tax aspects of M&A

COURSE OBJECTIVES (CO)

1. To evaluate the role of M&A as a strategic option for growth or consolidation
2. To analyse transactions including understanding strategic rationale, valuation methodologies and
financing options using appropriate frameworks.
3. To generate appreciation of the importance of stakeholder management in M&A.

COURSE LEARNING OUTCOMES (CLO)

Upon completion of the course,

CLO 1: Students will be able to apply the framework for analysing transactions including understanding
regulatory requirements, valuation methodologies and financing options (PLG 2).

CLO 2: Students will be able to appreciate the importance of stakeholder management in M&A (PLG 3).
COURSE CONTENT

 Strategic aspects of M&A, Identification of opportunities, takeover defence strategies, legal and
regulatory framework, accounting and taxation aspects, valuation and financing options, due
diligence, stakeholder management

PRESCRIBED TEXT BOOK

Sheeba Kapil, Kanwal N. Kapil (2017), Mergers and Acquisitions: Valuation, Leveraged Buyouts, and
Financing (2nd edition), Wiley

OTHER READING AND REFERENCES

Students can also refer to other books to supplement their study:

a. Aswath Damodaran, Damodaran on Valuation: Security Analysis for Investment and Corporate
Finance (2nd edition), Wiley India ltd.
b. Deloitte - A guide to mergers and acquisitions in the UK - available at
http://www.deloitte.co.uk/investingintheuk/pdfs/southafrica/uk_investingintheuk_sa_sixaguidetome
rgersandacquistionsintheuk.pdf
c. Evans, F. C., & Bishop, D. M. (2002), Valuation for M&A: building value in private companies (Vol. 10).
John Wiley & Sons.
d. Gaughan, P. A. (2010), Mergers, acquisitions, and corporate restructurings. John Wiley & Sons.
e. Pandey IM (2013), Financial Management, 10th Ed, Vikas Publishing House.
f. Redefining global strategy by Pankaj Ghemawat- In particular, Chapter 2 (CAGE Distance frame work)
and Chapter 3 (Adding Value Scorecard)
g. Robert F. Bruner (2004), Applied Mergers and Acquisitions, University Edition, John Wiley and Sons
Inc.

POLICY ON PLAGIARISM:

All students should be familiar with the Institute’s policy (PGP Handbook) on academic integrity.
Plagiarism of any kind and to any extent will result in the assessment as ‘zero’ for that component, with
no further opportunity to improve. Repetition of the offence would result in failure in the subject.
ASSESSMENT SCHEME AND WEIGHTAGE:

{A} END-TERM

Duration (in Open/closed

Evaluation Weightage (%) CLO Tested
minutes) Book
End-term 40 120 Closed Book CLO 2

{B} OTHER EVALUATIONS

Evaluation Unit of
S. No. Weight Time CLO
Type Evaluation
Mid-term test After 11th CLO 1
1. Individual 30%
(moodle based) session
2. Quiz 1 Individual 15% After Session 8
-
3. Quiz 2 Individual 5% After Session 18 -

Student After 14th -

4 Group 10%
Presentations session
 PART 2: SESSION PLAN

Session Topic Pedagogy Reading

1-2 Strategic Aspects of M&A
Identifying Opportunities- Buy
3-4
side and Sell side
5 Takeover Defence Strategies
Legal and Regulatory Framework,
6-7
Accounting and Tax Aspects
8-10 Valuation issues in M&A
Forms of Payment and Financing
11
Options
Chapters 1-3
Case: Godrej Consumer
Lecture and Discussion Products Ltd. (A) and (B) by
Jean-Louis Schaan; Chandra
Sekhar Ramasastry (HBS)
Chapter 5-6
Lecture and Case
Case: Kraft Foods and Heinz
Discussion
(Textbook)
Chapter 8
Lecture and Case
Case: Oracle takeover of
Discussion
PeopleSoft (Textbook)
Lecture and Discussion Chapter 7, handouts in class
Chapter 11-16
Lecture and Problem Case: A compelling and pre-
Solving emptive offer for the Valspar
Corporation (W16751)
Lecture and Problem
Chapter 17-20
Solving

12 Role of technology in M&A Lecture and discussion

13-14 Technology Due Diligence Lecture and Caselet

15-16 Technology Due Diligence Student presentations

17 HR: Legal Dimensions in M&A Lecture & Discussion -

Cultural and People Systems in
18-20 Lecture & Discussion -
M&A
 PLG MAPPING FOR THE COURSE

Addressed
CLO
PLG# Program Level Learning Goal by Course?
No.
(Yes / No)
Application of Fundamentals
PLG1 Traits: Demonstrate application of functional / conceptual knowledge NO NA
to business situations
Problem Identification and Solution
PLG2 Traits: Demonstrate ability to identify a problem, critically assess YES CLO 1
various alternatives and suggest appropriate solution
Integrative Thinking
Traits: Demonstrate ability to identify inter-linkages among functional
PLG3 YES CLO2
areas within an enterprise and assess the impact of external
environment on its performance
Effective Communication
PLG4 NO NA
Traits: Demonstrate proficiency in Oral and Written Communication
Ethical Responsibility
PLG5 Traits: Demonstrate awareness and assess impact of ethical behavior NO NA
on business
Leadership
PLG6 Traits: Demonstrate capability to take leadership role in a business NO NA
situation

*************

Faculty: Prof. Rajiv Shah

Signature & Date: ________________________

Endorsed by: Prof. Aditya Mohan Jadhav
Faculty: Prof. Animesh Bahadur
Signature &Date: ________________________
Signature & Date: ________________________

Faculty: Prof. Gurudutt Nayak

Signature & Date: ________________________