MERGERS AND ACQUISITIONS

FIN3MAQ

2015

Credit points: 15

Subject outline

In this subject students will examine the strategies and options available to companies to expand their operating activities and associated business framework and ownership network using merger and acquisition transactions. The subject will include consideration of different merger types and their associated motives and sources of value creation, the process involved in selecting merger targets, structuring, planning and decision-making involved in formulating acquisition strategies, bidding and target company completion and resistance strategies, and exposure to the financial and valuation aspects associated with mergers and acquisitions. A key part of embedding student learning outcomes, and assessment, will be student involvement in a team-based acquisition negotiation scenario.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorDarren Henry

Available to Study Abroad StudentsYes

Subject year levelYear Level 3 - UG

Exchange StudentsYes

Subject particulars

Subject rules

PrerequisitesN/A

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsMergers acquisitions and corporate restructuringsRecommendedGaughan, P,5TH EDN. NEW JERSEY, JOHN WILEY AND SONS, 2011

Graduate capabilities & intended learning outcomes

01. Demonstrate to an advanced level a range of skills, including appropriate negotiating, leadership and group support skills, as part of a representative bidder or target negotiation team in an acquisition transaction scenario

Activities:
Lectures, tutorials, acquisition negotiation scenario
Related graduate capabilities and elements:
Creative Problem-solving (Creative Problem-solving)
Critical Thinking (Critical Thinking)

02. Engage effectively in a formal negotiation exercise given a restricted time-frame and incomplete information

Activities:
Lectures, tutorials, acquisition negotiation scenario
Related graduate capabilities and elements:
Writing (Writing)
Information Literacy (Information Literacy)
Creative Problem-solving (Creative Problem-solving)
Critical Thinking (Critical Thinking)

03. Identify key elements associated with the outcome of merger transactions and choose appropriate bid attributes, conditions and strategies to maximise the likelihood of acquisition success

Activities:
Lectures, tutorials, prescribed reading, class discussion
Related graduate capabilities and elements:
Creative Problem-solving (Creative Problem-solving)
Writing (Writing)
Critical Thinking (Critical Thinking)

04. Independently identify and classify merger examples into specific transaction types, incorporating potential sources of value creation, based on the provision of industry and structural attributes associated with bidding and target companies

Activities:
Lectures, tutorials, prescribed reading, class discussion
Related graduate capabilities and elements:
Critical Thinking (Critical Thinking)
Writing (Writing)

05. Manipulate and interpret appropriate company financial data and mathematical valuation models to provide key input into merger pricing and bid premium decision-making

Activities:
Lecture, tutorials, class discussion, acquisition negotiation scenario
Related graduate capabilities and elements:
Information Literacy (Information Literacy)
Creative Problem-solving (Creative Problem-solving)
Critical Thinking (Critical Thinking)

06. Present a clear, concise and well-structured assessment of the acquisition motives of a bidding company using information about the merger participants

Activities:
Lectures, tutorials, prescribed reading, class discussion
Related graduate capabilities and elements:
Writing (Writing)
Creative Problem-solving (Creative Problem-solving)
Critical Thinking (Critical Thinking)

Subject options

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Start date between: and    Key dates

Melbourne, 2015, Winter semester, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorDarren Henry

Class requirements

Lecture Week: 27 - 28
One 2.0 hours lecture per day on weekdays during the day from week 27 to week 28 and delivered via face-to-face.
"intensive block mode"

Tutorial Week: 27 - 28
One 1.0 hours tutorial per day on weekdays during the day from week 27 to week 28 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
1500-word written reflective task and application linked to the acquisition negotiation scenarioStudents will take part in a team-based acquisition negotiation scenario, although they may not be directly assessed on their teamwork or participation in this scenario25 01, 02
four short tasks undertaken either on-line or in tutorial classes equivalent to 1200-wordsBest 3 out of 4 marks taken15 01, 03, 04, 05
one 2-hour final examination60 03, 04, 05, 06