Undergraduate Course: Mergers, Acquisitions, and Corporate Restructuring (BUST10149)
||College||College of Arts, Humanities and Social Sciences
|Credit level (Normal year taken)||SCQF Level 10 (Year 3 Undergraduate)
||Availability||Available to all students
|Summary||The Mergers, Acquisitions, and Corporate Restructuring course will provide you with the necessary skills to understand the strategic potential and limitations of Mergers, Acquisitions, and Corporate Restructuring activities such as divestitures, their value creation potential, as well as the role of markets and institutions within the same framework. The course is designed to provide you with the necessary grounding in theory, as well as applied and organizational skills, to demonstrate that you will be successful in related career paths.
The course aims to deliver the most important issues on Mergers, Acquisitions, and Corporate Restructuring such as corporate divestitures. In particular, the course aims to develop your ability to critically understand and evaluate issues such as:
- Mergers, Acquisitions, and Corporate Restructuring activities, the role of the business cycle in the economy and also the stock market development, in causing Mergers, Acquisitions, and Corporate Restructuring activities.
- Regulatory and strategic considerations, takeover tactics, and takeover defences.
- Motives for Mergers, Acquisitions, and Corporate Restructuring.
- Target firm and foreign target firm valuation.
- Issues developed through information economics that contribute on the negotiation and re-negotiation stage of corporate reforms such as M&As and divestitures.
- Empirical tests on the performance of merging and divesting firms at both the announcement- and the post-merger or integration period.
- Cross-border (cross-industry) acquisitions and their main differences with domestic (focused) ones.
The course relies on knowledge acquired from the Introduction to Corporate Finance or Principles of Finance courses in year 2 and covers the most recent developments from theoretical and empirical perspectives of Mergers, Acquisitions, and Corporate Restructuring.
The course will cover the following over ten two-hour sessions
- Introduction and overview of Mergers, Acquisitions, and Corporate Restructuring ┐ Activities, waves, and their theoretical perspectives.
- Mergers, Acquisitions, and Divestitures strategies - Motives, implications, and alternative perspectives.
- Target (foreign target) and divesting firm valuation.
- Valuation of synergies.
- Structuring corporate reforms and negotiations - Paying for the target firm & the investment banker perspectives.
- Value creation from M&As and Divestitures - Methods and evidence.
Student Learning Experience:
You will have to read the core textbooks that will support the learning outcomes of each topic/lecture, and also most of the additional references/readings that will accompany each topic. The weekly lectures will explore particular aspects of the course and the additional readings will attempt to help you put material in context, which will not substitute the core reading.
During lectures you will be asked to be active, completing exercises and discussing issues with your fellow students. In any case, the nature of the material means that in most cases there is not a single acceptable answer. The important aspect is that you are able to argue on a case and present compelling evidence to back your argument.
Information for Visiting Students
|Pre-requisites||Visiting students must have at least 4 Business courses at grade B or above. This MUST INCLUDE at least one Finance course at intermediate level. This course cannot be taken alongside BUST08030 Introduction to Corporate Finance or BUST08003 Principles of Finance. We will only consider University/College level courses.
|High Demand Course?
Course Delivery Information
|Academic year 2020/21, Available to all students (SV1)
|Learning and Teaching activities (Further Info)
Lecture Hours 20,
Dissertation/Project Supervision Hours 2,
Supervised Practical/Workshop/Studio Hours 2,
Feedback/Feedforward Hours 2,
Formative Assessment Hours 2,
Summative Assessment Hours 2,
Revision Session Hours 2,
Programme Level Learning and Teaching Hours 4,
Directed Learning and Independent Learning Hours
|Assessment (Further Info)
|Additional Information (Assessment)
||Individual Assignment 50%:
1,500 word individual assignment. Students will be required to discuss and critically evaluate the literature on a particular issue in Mergers and Acquisitions that will have covered in weeks 1-to-3. Students will be required to come up with a discussion around their own understanding and perception on the issue, and support their answer with evidence from the related literature (based on theoretical, methodological, and empirical evidence).
Individual Mini Project 50%:
1,500 words mini project
Students will be required to engage in a calculation and clearly discuss the methodology used, the advantages and disadvantages of the method, data requirements, and interpretation of their finding(s). Then, they will be required to develop a small report and relate it/support it with evidence from the relevant literature.
An extended tutorial will demonstrate how students are to use formulas and a spreadsheet/functions in Excel to complete a similar task.
||Formative feedback will be given via:
- online/live interactive sessions
- online office hours
- an extended tutorial session
- short formative assignment submitted in Week 4
Coursework marks will be published via Learn. Coursework feedback will be provided via Learn.
Your examination marks will be posted on Learn (together with generic feedback and examination statistics) as soon as possible after the Boards of Examiners meeting.
Generic feedback will be made available on Learn.
|No Exam Information
On completion of this course, the student will be able to:
- Critically understand the principal theories, concepts and principles of Mergers, Acquisitions, and Corporate Restructuring.
- Show detailed knowledge and understanding on, and also critically challenge, the valuation principles, the assumptions, as well as the practices of Mergers, Acquisitions, and Corporate Restructuring.
- Demonstrate detailed knowledge on target (and foreign target) valuation, as well as on the estimation of the synergies arising from Mergers, Acquisitions, and Corporate Restructuring.
- Demonstrate detailed knowledge (and ability to critically discuss) the various methodologies aiming to quantify value creation from Mergers, Acquisitions, and Corporate Restructuring, as well as critically discuss the literature on factors related to value creation from such corporate activities and rationalise success potential.
- Critically review and consolidate knowledge, skills, practices and thinking of the ways in which the negotiation of the various terms of Mergers, Acquisitions, and Corporate Restructuring is developed and structured.
DePamphilis, D., 2019. Mergers, Acquisitions, and Other Restructuring Activities, 9th Edition. Academic Press.
Sudarsanam, S. 2010. Creating Value from Mergers and Acquisitions: The Challenges, Prentice Hall - Pearson.
Arzac, R.E., 2008. Valuation for Mergers, Buyouts and Restructuring┐, Wiley. (Important for topics 3 to 6).
Additional readings (academic papers) will be suggested in the course of the lectures.
|Graduate Attributes and Skills
||Knowledge and understanding:
- A critical understanding of the historical patterns, building blocks, motives, valuation models, negotiation tactics, and other important concepts of mergers, acquisitions, and corporate restructuring such as divestitures.
- Practice: Applied knowledge, skills and understanding:
- Build a strategic business plan that assesses the value and feasibility of M&As and divestitures to reshape the modern corporation.
- Build on the most up-to-dated valuation techniques that help in evaluating firms and synergies in the context of M&As and divestitures.
- Develop and in-depth knowledge of the sensitivities across inputs in the valuation models of M&As and other corporate restructuring.
- Communicate and present their arguments on different mergers, acquisitions, and corporate restructuring, to the wider audience from the course. - Autonomy, accountability and working with others:
- Learn to conduct research on specific industries and business models to assess the implication of M&As by drawing from numerous sources.
- Work and collaborate in a team when asked during the lectures and in computer labs.
|Additional Class Delivery Information
||Introductory live sessions (Weeks 1+2)
1 out of 3 small group live sessions (Weeks 1-10)
|Course organiser||Dr Leonidas Barbopoulos
|Course secretary||Mrs Malini Hampton
Tel: (0131 6)50 3900