Mergers and Acquisitions
Have you ever dreamt of becoming an investment banker or lawyer specialising in the fantastic world of M&As? Come and explore this interesting course…
Mergers and Acquisitions
Programme which has the coordinating role for this minor:
Rotterdam School of Management, Erasmus University (RSM); Department of Finance
Other programmes which are contributing to the minor:
Content:Since the late 1990s and until the burst of the 2008-2009 global financial crisis, we have witnessed a dramatic increase in both domestic and international mergers and acquisitions (M&A) in Europe, the U.S. and in the rest of the world. Corporate finance theory suggests that takeovers and corporate restructuring can serve as an effective strategic tool for companies to respond to changes in the economic environment and, thus, create value for their shareholders. This course deals with mergers, acquisitions and other corporate restructuring activities in an international context. The course concentrates on the motives and strategic aspects of takeovers and restructuring, the valuation of firms involved in takeovers, the role of agency conflicts (between the management and the shareholders of a corporation) in takeovers, the effect of takeovers and restructuring on shareholder value and the practical aspects of the takeover process. It introduces the key principles and techniques of successful mergers, acquisitions, divestitures and leveraged buyouts. Next to taking a purely financial view, the course also looks at the psychological aspects of corporate restructuring transactions. For example, it has been shown that a lot of managers take over other firms simply because they are too confident about the value of the target, or because they want to boost their ego. The course discusses academic articles as well as anecdotal evidence about these irrational elements in M&A activity. Moreover, it discusses the impact of the 2008-2009 financial crisis on M&A and corporate restructuring activities throughout the world. This course addresses such crucial questions as: Why do takeover deals that looked great on paper fail in reality? How does one value companies acquiring, or being acquired? What is the best negotiation strategy? How can one properly manage risks when designing a deal? What does it take to make the “synergy” come to life? When do leveraged buy-outs make sense, and how can they be financed?
- Gaining a broad and solid understanding of all important aspects of M&A
- Having good knowledge of how M&A works from both theoretical and practical perspectives
- Being able to analyze a real-world M&A transaction rigorously and form an opinion about it
- Learning how to work in a team, and be able to “pitch” ideas in competitive environment
Specific characteristics:This course is directed to a wide population of students from various backgrounds. There are thus no formal prerequisites for taking BKBMIN008. Yet, I strongly advise you to have finished introductory courses of Corporate Finance and Financial Statement Analysis prior to starting with BKBMIN008. Class participation is an important and essential part of this course and attendance is therefore compulsory.
Maximum number of students that can participate: NA
Minimum number of students that can participate: 8
Contact hours: 50
Self-study hours: 370
Teaching Method:The course load of this BKBMIN008 course is set at 15 ECTS, representing a time budget of 420 hrs. To achieve the intended learning outcomes, the course is taught through both lectures and workshops:
During the opening lecture students have the opportunity to form a team of no less than 4 students (maximum 5), which will be their team for the group assignments.
Teaching Materials:This course covers selected chapters from the following textbook:
- Gaughan, P. A., 2015. Mergers, Acquisitions, and Corporate Restructurings. 6th Edition (Wiley) – ISBN: 978-1-118-99754-3.
Method of examination:Each student will be given the opportunity to demonstrate their understanding of the art and science of M&A through group assignments, written exam, in-class presentations and in-class plenary discussions. Grading is based on group assignments, a written test, and bonus points. The break-up of the examination is as follows:
- Group assignments
- Written test
- Bonus points
- Group Assignments:
- Written and Re-sit tests:
Group assignments (40%), written closed-book test (60%), plus bonus points (if any). The minimum grade requirement for the written test is 4.5/10.
Composition of final grade:
Contact person:Name: Dr Thomas Lambert
Phonenumber: +31 (0) 10 408 1450