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Module

Mergers and Acquisition

Module description

This course examines several forms of corporate reorganisations, including mergers and acquisitions, reorganisation through workouts and bankruptcy, divisional spin-offs and divestitures, and leveraged buyouts. Students will examine the process of managing reorganisation, the role of the investment bank and other specialists, regulation, and cross-country comparisons. The course will have a strong conceptual approach, with an emphasis on why mergers and other reorganisations take place, what is their role in the economy, and how do they perform from the viewpoint of shareholders and other parties. There will be a strong institutional flavour that will be communicated through papers of a more applied nature. Real case studies will provide the applications of the course.

Full module specification

Module title:Mergers and Acquisition
Module code:BEF2010DA
Module level:2
Academic year:2023/4
Module lecturers:
Module credit:15
ECTS value:

7.5

Pre-requisites:

None

Co-requisites:

None

Duration of module:

Module aims

The aim of the module is to familiarise the students with the notion of various types of corporate reorganisations and their role in the economy. Topics such as M&A valuation, financing and performance, ownership structure and control, as well as shareholder activism, bank debt restructuring and private equity transactions would be covered. Selected topics covered in the course study the cross-country corporate reorganisations, as well as the differences in ownership structure, legal system and corporate governance around the world. Students learn to apply insights from the recent academic literature in the context of real-life cases involving corporate reorganisations. They also develop their skills in team-working, presentation, and independent thinking in this module.

ILO: Module-specific skills

  • 1. comprehensively understand the notion of corporate reorganisations, their role in the economy, and how they perform from the viewpoint of shareholders and other parties;
  • 2. comprehensively understand major cross-country differences regarding ownership structure, control and the legal system;
  • 3. learn alternative ways of valuation of various types of corporate reorganisations;
  • 4. gain knowledge on the most common investment strategies of private equity funds: leveraged buyouts, venture capital, growth capital, distressed investments and mezzanine capital;
  • 5. effectively demonstrate familiarity with the recent developments in the M&A research and practice.

ILO: Discipline-specific skills

  • 6. understand the financial decision making process and apply it in solving of complex company reorganisation problems;
  • 7. propose novel solutions in financial problem solving and make decisions in unpredictable situations and design a range of different trading strategies and test their effectiveness;
  • 8. independently interpret financial data and problems in the light of established;
  • 9. access, synthesise, and evaluate with minimum guidance a body of relevant existing research and use it as a guidance in addressing real life corporate finance problems.

ILO: Personal and key skills

  • 10. utilise appropriate negotiation and persuasion techniques for a given negotiation situation to achieve desired outcomes, as required to deliver the role outcomes;
  • 11. work as part of an effective team to prepare a financial valuation and a negotiation plan;
  • 12. explore the role of mergers and acquisitions within your corporate strategy, and learn to manage cultural and system challengers arising post-acquisition, and understand key drivers for on-going success;

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
401100

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning and Teaching Activity14Masterclass/workshops
Scheduled Learning and Teaching Activity20Online lectures and webinars
Scheduled Learning and Teaching Activity6Revision
Guided Independent Study110Reading and research, web-based activities

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Online DiscussionOnline discussion contributions1-12Online discussion feedback from peers and lecturer
Weekly online quizzesSix quizzes, each taking about 20 minutes1-9Correct answers on ELE
Weekly Case StudiesSix weekly practical case studies, each lasting 3 hours 1-12Feedback and suggested solutions provided on ELE

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
50500

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Exam502-hour written exam1-9Marks and feedback
Applied Exercise/ Assignment502,000 words1-12Marks and feedback
0
0
0
0

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Exam (50%)2-hour written exam (50%)1-9Next available opportunity
Applied Exercise/Assignment (50%)2,000 words (50%)1-12Next available opportunity

Re-assessment notes

Defer – As first time

Refer – capped at 40%

Syllabus plan

  • Hostile takeovers in Europe, North America and Asia
  • Financing of mergers, bid premium and post-merger performance
  • Landscape of ownership across the world
  • Shareholder activism in US, Europe and Japan
  • Private equity transactions
  • Private companies and family ownership
  • M&A valuation
  • Bank debt restructuring and problems in debt overhang

Indicative learning resources - Basic reading

  • Mergers and Acquisitions, CFA® Program Curriculum Level 2, CFA Institute.

Module has an active ELE page?

Yes

Origin date

18/08/2020

Last revision date

30/03/2021