Mergers and Acquisitions

Master 2022/2023

Category 'Best Course for Broadening Horizons and Diversity of Knowledge and Skills'

Type: Elective course (Finance)

Area of studies: Finance and Credit

Delivered by: Department of Finance

Where: St.Petersburg School of Economics and Management

When: 2 year, 1, 2 module

Mode of studies: offline

Open to: students of all HSE University campuses

Instructors: Elena Rogova

Master’s programme: Finance

Language: English

ECTS credits: 3

Contact hours: 40

Full Syllabus

Abstract

The course is aimed at the better understanding of companies’ motives to merge and acquire the other businesses; it also provides the students with the methodology of deals analysus and valuation, the principles of companies’ integration at the post-merger stage, and the preparation of recommendations for business leaders in mergers and acquisitions decisions

Learning Objectives

To clarify the importance of mergers and acquisitions in the terms of the company’s strategy;
To show the ways of capturing the value drivers through mergers and acquisitions;
To achieve skills in analysis of target companies and the deals’ valuation
To gain knowledge and understanding of principles of deals structuring
To demonstrate innovative financial decisions in mergers and acquisition and to motivate students to find and implement such decisions
To demonstrate how ethical principles are implemented in corporate acquisition programmes
To find the ways of value growth through integration of merging companies
To give some ideas about the defense strategies in the cases of the hostile takeovers attempts

Expected Learning Outcomes

To show the ways of capturing the value drivers through mergers and acquisitions
To achieve skills in evaluation of target companies and the deals’ value
To analyze mergers and acquisitions of various types,
To assess the effect of hostile takeovers and defense precautions on companies' value and shareholders' wealth
To be acquainted with managers, investors and owners' motivation for performing mergers and acquisitions
To be prepared for taking ethical and reasonable, data-driven decisions on mergers and acquisitions, timely and in a persuasive manner
To be prepared to take ethical decisions in strategic investments
To compose consolidated balance of the merged company
To demonstrate innovative financial decisions in mergers and acquisition; To structure the deal
To find the ways of value growth through integration of merging companies
To give some ideas about the defense strategies in the cases of the hostile takeovers attempts;
To make decisions on taking strategic investments
To structure the deals; to know the main sources for LBO deals funding
To understand sources of funding for mergers and acquisitions

Course Contents

Valuation of M&A deals
Mergers and acquisitions as a part of strategic development of a company: motives, benefits, risks
Organisation of mergers and acquisitions. Post-merger integration
Hostile takeovers and defense strategies
Structuring the deal
Leveraged buyouts

Assessment Elements

Individual assignment. Real life deal analysis with in-class presentation and discussion
1. Find a deal that has been completed or announced in 2015-2018. 2. Study an information on the deal: how are the acquirer and the target? what are the main objectives of the deal? what are key deal features (use the criteria that have been discussed at the lecture)? what are real or provisional synergies from the deal? who are the main stakeholders and how are they involved in the deal? Who wins from the deal? 3. Is the deal sucessful? Provide your own calculations and reasons that can prove your opinion. 4. Describe the impact that the deal can make on the market. 5. Make a report (8-10 pages) and a presentation on your findings. The presentation will be discussed in class. The report should be uploaded in the system. Be ready to discuss your presentation in class
Group assignment. Case analysis on M&A deal valuation
Case analysis of a real deal with supporting calculations
Group home assignment - comparing successful and unsuccessful deals
Comparing successful and unsuccessful deals
Individual assignment - the case on hostile takeovers and defense strategy
The case will be given before the time of assignment. It contains the description of a hostile takeover and some insights and financial data. The students should answer several questions related to the defense strategy, its effect on the company, itd management and shareholders, on the acquirer; also, legal aspects are involved.
Class activities
Individual and group assignments, problem solving, discussions and case studies (weekly)
Final Case solution
The case will be available for reading three days before the exams, the questions will be given to students during the exam. Each correct answer weights a certain amount of points, the total number of points = 10

Interim Assessment

2022/2023 2nd module
0.05 * Class activities + 0.15 * Group home assignment - comparing successful and unsuccessful deals + 0.15 * Individual assignment. Real life deal analysis with in-class presentation and discussion + 0.25 * Final Case solution + 0.15 * Individual assignment - the case on hostile takeovers and defense strategy + 0.2 * Group assignment. Case analysis on M&A deal valuation

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

Alam, M. D., & Gühl, U. F. Project-Management in Practice: A Guideline and Toolbox for Successful Projects.: Springer, 2016 - 170 - 978-3-662-52944-7: Текст электронный // https://link.springer.com/book/10.1007/978-3-662-52944-7

Course Syllabus