Course Language:
English
Course Objectives:
To provide a well-rounded understanding of the major strategic, economic, financial, and governance issues of mergers and acquisitons, with an emphasis on the valuation and performance assessment of the M&A deals.
Course Content:
Drivers of mergers; Ethics in M&A; Cross-border M&A; Performance of M&A; Valuation approaches and synergies; Valuation of highly levered deals; Deal structuring; Post-merger management issues; Governance in M&A; Hostile takeovers; Takeover defenses
Teaching Methods:
1: Lecture, 2: Question-Answer, 3: Discussion, 4: Simulation, 5: Case Study
Assessment Methods:
A: Testing, B: Presentation C: Homework, D: Project, E: Laboratory
Vertical Tabs
Course Learning Outcomes
Learning Outcomes | Program Learning Outcomes | Teaching Methods | Assessment Methods |
1. To understand the motivation behind mergers and acquisitions and to identify the wrong reasons for M&A | 1,4,5,8 | 1,2,3,5 | A,C |
2. To know the historical performance of mergers and acquisitons and understand the reasons driving this performance | 1,3,4,5,8 | 1,2,3,5 | A,C |
3. To be able to discuss the basic steps that the merging firms go through in a typical M&A process, starting from deal initiation until deal completion | 1,2,3,4,5,6,8,9,10 | 1,2,3,5 | A,C |
4. To be able to apply the relevant valuation techniques to assess the values of the assets of the merging firms | 1,2,5,8 | 1,2,3,5 | A,C |
5. To be able to describe the key negotiation items between the merging firms in a merger process and assess their economic implications for both parties | 1,2,3,4,5,6,8,9,10 | 1,2,3,5 | A,C |
6. To be able to identify the managerial and governance problems that may arise post-merger and describe the methods to deal with them | 1,3,4,8,9,10 | 1,2,3,5 | A,C |
Course Flow
Week | Topics | Study Materials |
1 | Introduction and Review of Mergers and Acquisitions | Textbook Ch. 1 |
2 | Drivers of Mergers; Ethics in Mergers and Acquisitions | Textbook Ch. 2, Online resources |
3 | Performance of Mergers and Acquisitions | Textbook Ch. 2 |
4 | Cross-Border M&As | Textbook Ch. 18 |
5 | Strategy and Acquisition Search | Textbook Ch. 4 |
6 | Due Diligence | Textbook Ch. 5 |
7 | Midterm | |
8 | Valuation Approaches | Textbook Ch. 7 |
9 | Valuing Synergies | Textbook Ch. 8 |
10 | Valuing Highly Levered Deals | Textbook Ch. 14 |
11 | Valuing Liquidity and Control | Textbook Ch. 8 |
12 | Deal Structuring | Textbook Ch. 11 |
13 | Post-Merger Management Issues and Corporate Governance | Textbook Ch. 6 |
14 | Hostile Takeovers and Takeover Defenses | Textbook Ch. 3 |
Recommended Sources
Textbook | DePamphilis (2017). Mergers, Acquisitions, , and Other Restructuring Activities, Academic Press, 9th Edition. |
Additional Resources | Damodaran (2012). Investment Valuation: Tools and Techniques for Determining the Value of any Asset, Wiley, 3rd Edition. |
Material Sharing
Documents | Textbook, class notes, class Moodle page |
Assignments | Homeworks, case studies |
Exams | Midterm and Final |
Assessment
ASSESSMENT | |||||||
IN-TERM STUDIES | NUMBER | PERCENTAGE | |||||
Mid-Term | 1 | 30 | |||||
Class Performance | 1 | 30 | |||||
Final Exam | 1 | 40 | |||||
Total | 100 | ||||||
CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE |
40 | ||||||
CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE |
60 | ||||||
Total | 100 | ||||||
COURSE CATEGORY | Expertise/Field Courses |
Course’s Contribution to Program
COURSE'S CONTRIBUTION TO PROGRAMME | |||||||||||
No | Program Learning Outcomes | Contribution | |||||||||
1 | 2 | 3 | 4 | 5 | |||||||
1 | To comprehend the basic principles of finance and to be able to apply these principles in national and international areas. | X | |||||||||
2 | To use modern information technologies and current financial tools effectively. | X | |||||||||
3 | To comprehend the ethical rules and social responsibility understanding accepted by financial professional organizations and to apply them in the decisions to be taken. | X | |||||||||
4 | To have the infrastructure that will enable them to do business in multicultural, multilingual and interdisciplinary environments. | X | |||||||||
5 | To have information about the markets and the functioning of the markets and to analyze the developments in these markets. | X | X | ||||||||
6 | To recognize the management tools and models specific to multinational companies and to be able to apply them where necessary. | ||||||||||
7 | To understand the structure of the global economic system and to analyze how new developments will affect this structure. | X | |||||||||
8 | To be able to use the ability of critical thinking in the decision making process. | X | |||||||||
9 | To transfer the acquired leadership, teamwork and communication skills to the lifelong learning process. | ||||||||||
10 | To be able to manage the process with analytical and creative approaches by anticipating the opportunities and problems that dynamic working conditions may create. |
ECTS
ECTS ALLOCATED BASED ON STUDENT WORKLOAD BY THE COURSE DESCRIPTION | |||||||
Activities | Quantity | Duration (Hour) | Total Workload (Hour) | ||||
Course Duration (Including the exam week: 15x Total course hours/week) |
16 | 3 | 48 | ||||
Hours for off-the-classroom study (Pre-study, practice, review/week) |
16 | 4 | 96 | ||||
Homework | 5+1(Proje) | 60 | 60 | ||||
Mid-term | 1 | 10 | 20 | ||||
Final | 1 | 15 | 30 | ||||
Total Work Load | 254 | ||||||
Total Work Load / 25 (h) | 10.16 | ||||||
ECTS Credit of the Course | 10 |