Content, progress and pedagogy of the module

The module aims at providing theoretical and applied insights into the field of corporate mergers and acquisitions from an international perspective. Across the globe, mergers and acquisitions are reshaping the corporate and competitive landscape. Despite decades of practice and research, many mergers and acquisitions (M&A) findings remain questioned and inconclusive. The module aims at presenting the strategic and financial logic of these transactions.

During the module students will learn about types of mergers, merger consideration, merger strategy, reasons for M&A, merger waves and the impact of digitalisation on M&A. A special focus will be placed on the discussion of different types of synergies, benchmarks of value, valuation techniques such as the Discounted Cash Flow method and methods of comparables, anti-takeover defences, takeover options (bear hug, tender offer, proxy-fight) and leveraged buyouts (risks, sources of gains, financing). The students will get familiar with the role of arbitrageurs, hedge funds and private equity funds in M&A deals. A special session will be dedicated to academic evidence on Mergers and Acquisitions which will aim to provide answers to the question: What leads to success or failure in M&A transactions?

Learning objectives

Knowledge

The objective is that the student after the module possesses the necessary knowledge on:

• how to value mergers and acquisitions, valuation methods, the challenges of performing evaluation.
• anti-takeover defences and takeover options and understanding of leveraged buyouts.
• factors that influence the success or failure of mergers, the importance of synergies and takeover premiums.

Skills

The objective is that the student after the module possesses the necessary skills in:

• analysing a company’s performance, understanding valuation methods and tradeoffs.
•  conducting M&A valuation in practice by applying IT tools, desktop analytics and web applications.
• estimating the impact of takeover premium on the success of a merger deal.

Competences

The objective is that the student after the module possesses the necessary competences in:

• logical thinking, critical analysis, evaluating and interpreting the post-merger business performance.
• identifying the differences, functions, benefits and challenges of M&A.
• understanding sources of funding for mergers and acquisitions and testing valuation assumptions.

Type of instruction

For information see § 17.

Exam

Exams