ICM227-Mergers and Acquisitions

Module Provider: ICMA Centre
Number of credits: 10 [5 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites: ICM311 Corporate Finance and Investment Banking
Modules excluded:
Current from: 2023/4

Module Convenor: Dr Dina Ghanma
Email: dina.ghanma@icmacentre.ac.uk

Type of module:

Summary module description:

This module tracks the M&A process from the strategic decision to undertake mergers and acquisitions, through the deal-making process, and then considers the extent to which M&A activity produces the desired results. Knowledge of M&A will be developed by the studying real-world cases.

Aims:

To enable students to understand why companies decide to expand through acquisition, how they find and value targets, decide how to pay for their acquisitions, and then integrate them into the organisation.

Assessable learning outcomes:

By the end of the module students will be able to:

• Apply knowledge from finance to underpin the analysis of mergers and acquisitions


• Summarise the M&A process from target identification to integration


• Discuss the implications of M&A valuation and payment methods on shareholder wealth


• Conduct event studies and interpret the findings of M&A empirical research


• Evaluate the success of M&A

Additional outcomes:

Students will have the opportunity to work in teams and to improve their presentation skills.

Outline content:

• Overview of the M&A process


• Due diligence and valuation


• Payment methods


• Announcement effects and legal aspects


• Integration and long-run outcomes

Brief description of teaching and learning methods:

Lectures will be used to present and explore theory, evidence and real-word examples. Seminars will be used to discuss problem sets and case studies.

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

One 1-hour in-class test held in week 7-8 of the Spring Term.

One group project with oral presentation to be submitted at the end of the Spring Term.

Formative assessment methods:

Seminar questions are assigned for each class. The seminar leader will facilitate discussion and offer feedback.

Penalties for late submission:

The below information applies to students on taught programmes except those on Postgraduate Flexible programmes. Penalties for late submission, and the associated procedures, which apply to Postgraduate Flexible programmes are specified in the policy “Penalties for late submission for Postgraduate Flexible programmes”, which can be found here: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/qap/penaltiesforlatesubmissionpgflexible.pdf

The Support Centres will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;

• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/qap/penaltiesforlatesubmission.pdf.

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:
50% weighted average mark

Reassessment arrangements:

Resubmission of individual project

Additional Costs (specified where applicable):

1) Required textbooks:

• Bruner, Robert (2004) “Applied Mergers and Acquisitions. University Edition”, Wiley Finance

           ISIN 0-471-39534-X

            Price: £56.91

• Bruner, Robert (2006) “Case Studies in Finance, 5e”, Mc-Graw Hill (4 copies available at the library)

           ISBN-10: 0071267522, ISBN-13: 978-0071267526

           Price: £6.93

2) Recommended textbooks: 

• Koller, Goedhart, Wessels (2010) “Valuation: Measuring and Managing the Value of Companies”, Fifth Edition, John Wiley and Sons.

           ISBN 978-0-470-42470-4

           Price: £47.44

• Vernimmen, P. et al (2014) “Corporate Finance: Theory and Practice, 4e”, Wiley.

           ISBN-10: 1118849337

           ISBN-13: 978-1118849330

           Price: £41.99

Last updated: 14 April 2023