fin3maq mergers and acquisitions
MERGERS AND ACQUISITIONS
FIN3MAQ
2016
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
Learning resources
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Readings | Mergers acquisitions and corporate restructurings | Recommended | Gaughan, 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 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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Melbourne, 2016, Winter semester, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorDarren Henry
Class requirements
LectureWeek: 27 - 28
Five 2.0 hours lecture per week on weekdays during the day from week 27 to week 28 and delivered via face-to-face.
"intensive block mode"
TutorialWeek: 27 - 28
Five 1.0 hours tutorial per week on weekdays during the day from week 27 to week 28 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| 1500- word written reflective task associated with the acquisition negotiation scenario | Students will take part in a team-based acquisition negotiation scenario, although they may not be directly assessed on their teamwork or participation in this scenario | 25 | 01, 02 |
| four short tasks in tutorial classes equivalent to 1000-words | Best 3 out of 4 marks taken | 15 | 01, 04, 05 |
| one 2-hour final examination | 60 | 04, 05, 06 |