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Semester 1

Mergers, Acquisitions, and Corporate Restructuring (BUST10149)

Subject

Business Studies

College

CAHSS

Credits

20

Normal Year Taken

3

Delivery Session Year

2023/2024

Pre-requisites

Visiting students must have completed 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.

Course 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.

Course Description

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. Outline Content: 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.

Assessment Information

Written Exam 50%, Coursework 50%, Practical Exam 0%

view the timetable and further details for this course