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25735 Mergers and Acquisitions

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2018 is available in the Archives.

UTS: Business: Finance
Credit points: 6 cp

Subject level:

Postgraduate

Result type: Grade and marks

Requisite(s): 25765 Corporate Finance
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Anti-requisite(s): 25807 Mergers and Acquisitions

Description

This subject looks at all aspects of the mergers and acquisitions process by which one organisation is subsumed into another. Topics covered include valuation, leveraged buyouts, asset sales, and restructuring and defeasance. Legal and tax aspects of mergers and acquisitions are also examined.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. construct a framework to analyse company mergers
2. evaluate the costs and benefits of mergers and acquisitions
3. apply the financial techniques involved in assessing the merits of mergers and acquisitions
4. discuss the legal and taxation aspects of mergers and acquisitions

Contribution to the development of graduate attributes

Mergers and Acquisitions are important processes of economic rationalisation. This subject addresses all the important issues arising from this process.

Teaching and learning strategies

The subject will be taught using a combination of lectures and workshops. These classes will be supplemented with both printed and electronic learning materials and resources. The UTS web-based communication tool (UTS Online) will be used to share information and encourage interaction between staff and students. Students will also use appropriate computer software such as spreadsheets and word processors to complete assigned tasks. Students will work on the individual assignment on their own, but there will be a lecture session during which the students will have the opportunity to present their work to the other students and the lecturer and receive feedback.

Content (topics)

  • Economics of mergers and acquisitions
  • Strategy and the Origination of Transaction Proposals
  • Diligence, Valuation, and Accounting
  • Design of Detailed Transaction Terms
  • Rules of the Road: Governance, Laws, and Regulations
  • Restructuring of Ownership and Assets
  • Leveraged Buyouts and Private Equity

Assessment

Assessment task 1: Assignment 1 (Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2 and 3

Weight: 10%
Length:

1-2 pages for each write-up.

Assessment task 2: Assignment 2 (Group)

Objective(s):

This addresses subject learning objective(s):

1, 2 and 3

Weight: 30%
Length:

The “pitch book” may contain up to 30 slides (pages).

Assessment task 3: Final Exam (Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2, 3 and 4

Weight: 60%

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Required texts

DePamphilis, Donald. Mergers, Acquisitions, and Other Restructuring Activities; Academic Press; 8th edition; 2015.

The hard copy of the textbook is available at Zookal.com (ISBN: 9780128013908):

https://www.zookal.com/mergers-acquisitions-and-other-restructuring-activities-8th-edition-9780128013908/

The soft copy of the textbook is available via UTS Library: http://find.lib.uts.edu.au/?R=OPAC_b2985975

Recommended texts

The additional readings suggested below are for students who wish to achieve a more detailed understanding of the concepts covered in this course.

  • Bruner, R. Applied Mergers and Acquisitions. John Wiley & Sons Inc.; 2004.
  • Koller, T., Goedhart, M. and Murrin, J. Valuation: Measuring and Managing the Value of Companies. John Wiley &Sons Inc.; 5th edition; 2010.
  • Rosenbaum, J. and Pearl, J. Investment Banking. Wiley Custom Learning Solutions;2nd edition; 2013.
  • Peirson, G. et al. Business Finance. McGraw-Hill; 12th edition; 2015.
  • Faculty of Business (2014), Guide to Writing Assignments, available at:

http://www.uts.edu.au/sites/default/files/business-writing-guide-2014.pdf

Other resources

I would strongly recommend reading the follwoing books:

1. A highly entertaining and instructive account of a high profile M&A contest from the 1980s:

Bryan, B. and Helyar, J. Barbarians at the Gate: The Fall of RJR Nabisco. HarperCollins Publishers; 2009.

2. A detailed history of M&As up to the beginning of the 2000s:

Wasserstein, B. Big Deal: Mergers and Acquisitions in the Digital Age. Business Plus; 2001.