FTMBA 2022_II Mergers & Acquisitions

After a substantial drop in takeover activity during the recent financial crisis, the world mergers and acquisitions (M&As) market reached new heights in 2014‐2016 with announced aggregate deal values ranging between $3,000 billion and $4,200 billion. Hence, M&As are making headlines again. The course aims at providing participants general knowledge on M&As from a corporate finance perspective. After successful completion of the course, the course participants will have a solid understanding of the most fundamental issues and concepts in the M&A field. Without being exhaustive, the following topics will be covered during the course: wealth effects associated with M&As, motivations of companies to enter the M&A market, role and value added of investment banks in the takeover process, choice of the sale process, business valuation, merger arbitrage, role of CEOs in large transactions, and further issues related to regulation and social utility associated with the existence of an active M&A market. The course will also adopt a practitioner’s point of view to the M&A phenomenon. In almost all deals external M&A consultants are active in advising companies. Also, an important trend is observed in M&A deal making nowadays: most large and highly acquisitive companies develop their own in‐house M&A teams. Therefore, three industry testimonies and real case studies from the field will complement this course. Bridging the gap between research and practice, this course is ideal for those interested in M&As and/or willing to work in the M&A industry. The course builds on your corporate strategy know‐how and requires some basic financial calculation skills.

Aktas, N., and E. de Bodt, 2011. Merger negotiations: Takeover process, selling procedure, and deal initiation. The Art of Capital Restructuring, 261–279. Aktas, N., E. de Bodt, and R. Roll, 2010. Negotiations under the threat of an auction. Journal of Financial Economics 98, 241–255.Subramanian, G., 2009. Negotiation? Auction? A deal maker’s guide. Harvard Business Review 87, 101-107Jetley, G., and X. Ji, 2010, The shrinking merger arbitrage spread: Reasons and implications, Financial Analysts Journal 66, 54–68.Mitchell, M., T. Pulvino, and E. Stafford, 2004. Price pressure around mergers. Journal of Finance 59, 31–63.Rappaport, Alfred, and Mark L. Sirower, 1999. Stock or cash? The trade-offs for buyers and sellers in mergers and acquisitions. Harvard Business Review, Nov-Dec, 147–158.Luehrman, A., 2009. Corporate valuation and market multiples. Harvard Business Publishing, Product # 206039-PDF-ENGSchill, M.J., 2013. Business valuation: Standard approaches and applications. Harvard Business Publishing, Product # UV6586-PDF-ENG.Schill, M.J., and E. Loutskina, 2013. Business valuation in mergers and acquisitions. Harvard Business Publishing UV6759-PDF-ENG.

Lectures, expert testimonies, and case analyses

Basic knowledge in Corporate Finance and Managerial Finance

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