Mergers & Acquisitions and Corporate Restructuring (Functional Electives Finance)

Paper Code: 
MBF-621
Credits: 
4.0
Contact Hours: 
40.00
Max. Marks: 
100.00
Objective: 
  • To give an understanding to the students about the corporate restructuring process.
  • To acquaint the students about the procedures of mergers and acquisitions.
6.00
Unit I: 
Mergers and Acquisition: An Introduction

Meaning and definition of Merger and Acquisition, Motives of Merger and Acquisitions, Stakeholder Expectations in Mergers and Acquisitions, Reasons for buying a Business, Reasons for selling a Business.

7.00
Unit II: 
Mergers and Acquisitions: A Strategic Perspective

Process of Merger & Acquisition, Concept of Due Diligence, Need for Due Diligence, Parties interested in Due Diligence, Steps in Due Diligence- Planning Phase, Data Collection Phase, Data Analysis Phase, Concept of Cross- border Acquisitions, Need for Cross- border Acquisitions.

7.00
Unit III: 
Corporate Restructuring

Meaning, Different Methods of Restructuring- Joint Ventures,
Sell Off and Spin Off, Divestitures, Equity Carve Out ,Leveraged Buy Outs (LBO),Management Buy Outs (MBO)

15.00
Unit IV: 
Corporate Valuation

Introduction, Basics of Valuation- Fair Market Value, Fair Value, Book Value, Intrinsic Value, Replacement Value, Liquidation Value, Going Concern Value, Equity Interest Value, Insurable Value. Objectives of Valuation, Principles of Business Valuation.
Valuation Approaches – Net Asset Valuation Model, Price Earning Ratio Model, Discounted Cash Flow Valuation

5.00
Unit V: 
Takeovers

Introduction, Friendly and Hostile Takeovers, Reasons for Takeovers, Takeover Tactics- Dawn Raid, Bear Hug, Saturday Night Special, Proxy Fight, Takeover Defenses- Divestiture, Crown Jewels, Poison Pill, Greenmail, White Knight, Advantages and Disadvantages of Takeovers.

Essential Readings: 
  • Fred Weston, Kwang S Chung, Susan E Hoag – Mergers, Restructuring And Corporate Control – Pearson Education, 4/e,2008.
  • Mergers acquisitions and Business valuation, Ravindhar Vadapalli Excel books, 1/e 2009.
  • Ashwath Damodaran – Corporate Finance-Theory And Practice, John Wiley & Sons, 2009.
  • Prasad G. Godbole, Mergers, Acquisitions and Corporate Restructuring, Vikas Publication, 2009
References: 
  1. Sudi Sudarsanam – Value Creation From Mergers And Acquisitions,Pearson Education, 3/e, 2009.
  2. Valuation for mergers Buyouts & Restructuring – Arzak Wiley
  3. India (P) Ltd.2004.
  4. Merger Acquisitions & Corporate Restructuring – Chandrashekar
  5. Krishna Murthy & S.R Vishwanath, Sage Publication.2007
  6. Weston, Mitchel And Mulherin - Takeovers,Restructuring And
  7. Corporate Governance – Pearson Education, 4/e, 2003.
  8. Shiv Ramu – Corporate Growth Through Mergers And Acquisitions
  9. – Response Books,2006.
  10. P Mohan Rao – Mergers And Acquisitions – Deep And Deep
  11. Publications, 2007
  12. Machiraju – Mergers And Acquisitions – New Age Publisherss
  13. Ramanujam et al – Megers – TMH, 2009
  14. Handbook of International Mergers & Acquisitions – Gerard Picot-
  15. Palgrave Publishers Ltd. 2008.
  16. Restructuring for Growth – John C. Michelson – TMH, 2008.