UNIT I Mergers and Acquisitions
Mergers and Acquisitions – Meaning and Types – motives behind mergers – theories of mergers – operating, financial and managerial synergy of mergers – value creation in mergers – internal and external change forces contributing to M & A activities
UNIT II Corporate Restructuring
Methods of Restructuring – Joint Ventures – Sell off and Spin off – Divestitures – Equity Carve out – Leveraged Buyouts (LBO) – Management Buyouts – Master Limited Partnerships – Employee Stock Ownership Plans (ESOPs)
UNIT III Strategic Aspects of M&A
A strategic perspective – Industry Life Cycle and Product Life Cycle analysis in M&A decision, strategic approaches to M&A – SWOT analysis, BCG matrix, Porter’s five forces model.
UNIT IV Merger Process
Dynamics of M&A process – identification of targets – negotiation – closing the deal. Five–stage model – Due Diligence (detailed discussion); Process of merger integration – organizational and human aspects – managerial challenges of M & A. Methods of financing mergers – cash offer, share exchange ratio
UNIT V Valuation
Valuation as a tool for strategic negotiations - Approaches – Discounted Cash Flow Valuation – Relative Valuation – Net Physical Assets method – Yield method - Valuing Operating and financial synergy – Valuing corporate control – Valuing of LBO
Learning Resources
@ 2024 - 2025 Copyright, SRM Institute of Science and Technology (formerly known as SRM University), All Rights Reserved