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Mergers&Acq SEM6

M&A project reports

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26 views5 pages

Mergers&Acq SEM6

M&A project reports

Uploaded by

joshigunjita9548
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CBCS - 2020 Sem VI - Mergers & Acquisitions

SEMESTER-VI
MERGERS & ACQUISITIONS

Programme: B.Com (IPP)


Course Code: U20/COM/DSE/603B Max. Hours: 75
Course Type: DSE-IV Max Marks: 100 (40:60)
Hours per week: 5 No. of Credits: 4

Course Objective:

To provide an overview and importance of mergers and acquisitions. To understand the process,
valuation and regulatory provisions relating to Mergers & Acquisitions.

Course Outcomes:

CO1: Acquire conceptual understanding of Mergers.

CO2: Know about strategic perspective & strategic approaches to M & A.

CO3: Become aware of the methods of Corporate Restructuring and also about the Merger
Process.

CO4: Know about various Valuation Approaches and also about different methods of financing
mergers.

CO5: Become aware of the Takeover process and also about the Legal and regulatory
framework of M & A.

Department of Commerce, St. Francis College for Women, Hyderabad - 16


CBCS - 2020 Sem VI - Mergers & Acquisitions

MODULE- I: INTRODUCTION (15 Hrs)

Mergers-in the nature of acquisitions and amalgamations, types of merger –


motives behind mergers – theories of mergers – operating, financial and
managerial synergy of mergers – value creation in horizontal, vertical and
conglomerate mergers – internal and external change forces contributing to
M&A activities.

MODULE- II: APPROACHES TO MERGERS AND ACQUISITIONS (15 Hrs)

M&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.

MODULE - III: CORPORATE RESTRUCTURING (15 Hrs)

Corporate restructuring – different methods of restructuring – joint ventures –sell off and spin
off – divestitures – equity carve out – leveraged buy outs(LBO) – management buy outs –
master limited partnerships – employee stock ownership plans /stock option plan(ESOP)
Merger Process: Dynamics of M&A process- identification of targets negotiation-closing the
deal. Five-stage model-due diligence (detailed discussion).

MODULE - IV: VALUATION METHODS (15 Hrs)

Valuation – valuation approaches – discounted cash flow valuation – relative valuation-


valuing operating and financial synergy - valuing corporate control – valuing of Leveraged Buy
Out (LBO) - adjusted present value(Including simple practical problems)

Methods of financing mergers – cash offer, share exchange ratio(Including simple practical
problems) – mergers as a capital budgeting decision.

Department of Commerce, St. Francis College for Women, Hyderabad - 16


CBCS - 2020 Sem VI - Mergers & Acquisitions

MODULE- V: TAKEOVERS,LEGAL AND REGULATORY FRAME WORK


(15Hrs)

Takeovers, Types, Takeover defences-pre offer defenses-post offer defences.


Legal and regulatory frame work of M & A – provisions of Companies Act 2013 –Indian
Income Tax act 1961 – SEBI Takeover Code - Provisions of Competition Act.

Suggested Readings:
1. SudiSudarsanam, Value Creation From Mergers And Acquisitions, Pearson Education

2. Fred Weston, Kwang S Chung, Susan E Hoag, Mergers, Restructuring and Corporate

Control – Pearson Education, RavindharVadapalli , Mergers acquisitions and Business

valuation, Excel books

3. Valuation for mergers Buyouts &Restructuring,Arzak, Wiley India (P) Ltd.

4. Merger Acquisitions & Corporate Restructuring,Chandrashekar Krishna Murthy

&Vishwanath. S.R, Sage Publication.

5. Weston, Mitchel And Mulherin, Takeovers,Restructuring And Corporate Governance ,

Pearson Education, Shiv Ramu, Corporate Growth Through Mergers And Acquisitions,

Response Books

Department of Commerce, St. Francis College for Women, Hyderabad - 16


CBCS - 2020 Sem VI - Mergers & Acquisitions

MERGERS & ACQUISITIONS


MODEL QUESTION PAPER

Course Code: U20/COM/DSE/603B Max Marks: 60


Credits : 4 Time : 2Hrs

Section – A
I. Answer any FIVE 5 × 2 = 10 M

1. Merger
2. Motives behind Mergers
3.SWOT Analysis
4. BCG Matrix
5. LBO
6. Share Exchange Ratio
7. Cash Offer
8. White Knight

Section – B
II. Answer the following 5 x 10 = 50 M

9 What is Merger? Write about the types of mergers in detail with


suitable examples.
Or
10 What is Merger? Write about the Theories of Mergers.

11 Write about Industry Life Cycle.

Or
12 Write about Porter’s Five Forces Model.

13 What is Corporate Restructuring? Write about different methods of Corporate


Restructuring.

Or
14 Write about the Five Stage Model of Merger Process.

Department of Commerce, St. Francis College for Women, Hyderabad - 16


CBCS - 2020 Sem VI - Mergers & Acquisitions

15 Write about the Valuation Approaches of Mergers & Acquisitions.

Or
16 A firm can invest Rs. 1,80,000 now to receive Rs. 40,000 per year for ten years. The cost of
capital for this project is 14 percent. What is the NPV of the Project and suggest
accordingly.
17 What is Takeover? Write about hostile takeover and also about takeover defenses.

Or
18 Describe the legal and regulatory framework for mergers and acquisitions in India.

Department of Commerce, St. Francis College for Women, Hyderabad - 16

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