Postgraduate Course: Mergers and Acquisitions (CMSE11458)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Not available to visiting students |
| SCQF Credits | 10 |
ECTS Credits | 5 |
| Summary | This course is suitable for students with postgraduate-level backgrounds in corporate finance and financial markets and provides students with the necessary skills to understand the strategic potential and limitations of mergers and acquisitions, their value creation potential, as well as the role of markets and institutions within the same framework. The course is designed to provide students with the necessary grounding in theory, as well as applied and organisational skills, to demonstrate that they will be successful in related career paths. |
| Course description |
Academic Description:
The course aims to deliver students, at a rigorous level, the several and important issues on mergers and acquisitions (M&As). In particular, the course aims to develop students' ability to critically understand and evaluate issues relevant to M&As. The course relies on in-depth issues in corporate finance, such as capital structure, and covers the most recent developments from theoretical and empirical perspectives.
Course content includes merger waves, acquisition strategies and motives, target firm valution, structuring acquistions and negatiations, anti-trust issues, investment banker perspective, M&A value creation.
Student Learning Experience:
Students will have to read the core texts 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 students put material in context, which will not substitute the core reading.
During lectures students will be asked to be active, completing exercises and discussing issues with their 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 students to be able to argue on a case and present compelling evidence to back their argument.
Tutorial/seminar hours represent the minimum total live hours - online or in-person - a student can expect to receive on this course. These hours may be delivered in tutorial/seminar, lecture, workshop or other interactive whole class or small group format. These live hours may be supplemented by pre-recorded lecture material for students to engage with asynchronously.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | None |
Course Delivery Information
| Not being delivered |
Learning Outcomes
On completion of this course, the student will be able to:
- Discuss the theoretical foundations of mergers and acquisitions.
- Discuss the valuation principles and practices of M&As and rationalise success potential.
- Value target firms and estimate the potential synergies arising from M&As.
- Contrast empirical methodologies that aim to capture value creation from M&As.
- Show ability to negotiate the various terms of M&As and show knowledge around re-negotiation options based on risk-management tools.
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Reading List
Required:
-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).
Recommended:
-Bruner, F.R., 2004. Applied Mergers and Acquisitions, Wiley.
-Gaughan, P.A., 2010. Mergers, Acquisitions, and Corporate Restructurings, Wiley.
-DePamphilis, D., 2013. Mergers, Acquisitions, and Other Restructuring Activities, Academic Press.
-Tirole, J., 2006. The Theory of Corporate Finance, Princeton U. Press.
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Additional Information
| 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 and acquisitions (M&As).
Practice: Applied knowledge, skills and understanding:
-Build a strategic business plan that assesses the value and feasibility of M&As 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.
-Develop and in-depth knowledge of the sensitivities across inputs in the valuation models of M&As.
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| Keywords | Not entered |
Contacts
| Course organiser | Dr Leonidas Barbopoulos
Tel:
Email: Leonidas.Barbopoulos@ed.ac.uk |
Course secretary | Miss Charlotte Brady
Tel: (0131 6)50 8074
Email: C.Brady@ed.ac.uk |
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