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Mergers & Acquisitions (19BBA30020)

General information

Type:

OP

Curs:

3

Period:

S semester

ECTS Credits:

4 ECTS

Teaching Staff:

Group Teacher Department Language
Ed: 1 Santiago Simón del Burgo Economía, Finanzas y Contabilidad ENG

Group Teacher Department Language
Ed: 2 Santiago Simón del Burgo Economía, Finanzas y Contabilidad ENG

Previous Knowledge

Students should be familar with Corporate Finance

COURSE CONTRIBUTION TO PROGRAM

The aim of this course is to introduce students to the complex world of strategic alliances, seeing them as an integrated process and not one pertaining to isolated compartments: finance, business policy and human resources. Upon successfully completing this course, students should have a better perspective on the problems associated to M&As, as well as the dangers that lead to more than 50% of these operations not creating any value for shareholders. At the same time, students will also learn about how to increase the chances of success in those operations that they play a part. In addition, students will become familiar with the different financing mechanisms available through venture capital, stock market launch, etc.

Course Learning Objectives

Upon successfully completing this course, students should:
1. Master the vocabulary related to M&As.
2. Be fully familiar with the different stages in an acquisition.
3. Be familiar with the typical errors made in these types of operations and the mechanisms to try to avoid them.
4. Be cabable of designing a strategic alliance, advising on the best means of collaboration and how to finance the operation.
5. Know about the different specialised financing mechanisms available for this type of operation, venture capital, stock market launch, etc.

The course syllabus includes:
1. Introduction to mergers and acquisitions (M&As): types and motives.
2. M&As as multi-phase operations. From their strategic planning to completion.
2.1 Strategic planning
2.2 Search for candidates
2.3 Company appraisals. Calculating synergies in the operation
2.4 Due diligence and its different phases
2.5 Legal documentation. Non-disclosure agreement, letter of intent, merger agreement
3. Post-acquisition and integration.
3.1 Key causes of failures in M&As
3.2 Executive turnover
4. Venture capital
4.1 Expected profit
4.2 Types of operations
4.3 Volume of activity in Spain and in the rest of the world
5. Management buy-outs (MBOs)
5.1 Different types
5.2 Participants and different profiles of the companies involved
6. Initial public offering (IPO): Stock market launch
7. Acquisition of publicly-listed companies: Hostile and friendly takeovers

Assessment criteria

Students¿ assessment consists of three components:

1. 40% of their final marks corresponds to written presentations on the case studies.

2. 10% corresponds to class participation (group discussions and presentations).

3. 50% corresponds to the final exam.

Bibliography

SHERMAN, Andrew; HART, Milledge. Mergers & Acquisitions From A To Z. AMACOM 2006.

BUONO, Anthony; BOWDITCH, James. The Human Side of Mergers and Acquisitions. Jossey-Bass, 1989.

CARTWRIGHT , Sue; COOPER, Gary. Managing Mergers Acquisitions & Strategic Alliances. Utterworth Einemann,1996.

MASCAREÑAS PEREZ-IÑIGO, Juan. Manual de Fusiones y adquisiciones de empresas. Mc Graw-Hill, 1996.

PALACIN, Maria José. El mercado de control de empresas: El caso Español. Ariel Economía, 1997.

RAPPAPORT, Afred. Creating Share Holder Value. The free press, 1998.

ROCK, Milton; ROCK, Robert H.; SICORA, Martin. The Mergers & Acquisitions Handbook. Mc Graw-Hill, 1994.

WESTON, J. Fred; CHUNG, Kwang; SIU, Juan. Takeovers, Restructuring and Corporate Governance. Prentice Hall, 1998.

Timetable and sections

Group Teacher Department
Ed: 1 Santiago Simón del Burgo Economía, Finanzas y Contabilidad

Timetable Ed: 1

Group Teacher Department
Ed: 2 Santiago Simón del Burgo Economía, Finanzas y Contabilidad

Timetable Ed: 2