Building on the foundation that you have in our prerequisite, we will begin with the valuation process learning financial forecasting and model construction.
Mergers and Acquisitions
Building on the foundation that you have in our prerequisite, we will begin with the valuation process learning financial forecasting and model construction. From there we will enter into the strategy, management, integration, due diligence, and ethical situations that surround this process and industry.
1.3 Prerequisites
a) Courses:
AD 630: Accounting
AD 731: Finance
b) Student Competencies:
Independent Research (APA Paper Format)
Familiar with:
MS Word, MS Excel, MS Power Point
c) Other Materials
Case Study Analysis
- Text & Materials
3.1 Required Texts
I will provide you with a copy of the textbook, Mergers & Acquisitions, a Guide Through the Process.
*However, there are other materials you will need to acquire:
Case Study Analysis
The case studies for this class were chosen to represent different aspects of financial strategy. Case study enables us to venture into many business situations, analyze the important issues, and after detailed review, make recommendations.
Harvard Cases & Notes
Available through the Bookstore
VacationSpot.com & Rent-A-Holiday 9-800-334
Disney and the Acquisition of Pixar
May also be obtained at: www.hbsp.harvard.edu
Case Studies
Available through the European Case Clearing House
American Airlines 113-031-1
National Medical Care 200-014-1
Willamette 102-016-1
Teradyne 201-052-1
MedImmune 102-009-01
Trans World Airlines 201-037-1
Warburton, Becker & Chambers
CVS & Aetna – I will provide you this case
Books
Sullivan, John D. Case Studies in Mergers & Acquisitions, Authorhouse,
ISBN-13: 978-1418438449
May also be obtained at: www.bookstore.authorhouse.com/
I will also provide you with copies of the Mergers & Acquisitions text.
Optional Text
Brigham & Ehdart, Financial Management – Available at the Bookstore
Other Suggested Reading:
The Wall Street Journal
Investor’s Business Daily
Fortune Magazine
Business Week
3.2 Other Required Materials
a) MS Word, MS Excel, and MS Power Point
b) Boston University Library Link
c) Blackboard
Suggested Calculator
Hewlett Packard HP 12-C
- Course Learning Objectives
4.1 Course Goals and Objectives
The course will enable the student to understand why they are important, how all aspects of a transaction are completed. The course will focus on valuation, due diligence, integration, agency issues, cultural challenges, the impact of transnational deals, legal challenges from the United States, the European Union, and the Far East. Students will also learn quantitative and qualitative decision-making, as well as the impact transactions, both good and bad, have on a corporation.
The course will cover the fundamental theoretical concepts, as well as management issues. Case studies will reinforce the theoretical concepts.
a) Purpose & Importance
The purpose is to define and analyze the major issues in mergers and acquisition, including: where to see potential problems in financial forecasts and strategic rationale and to recognize situations that may the result of agency issues.
b) Objectives
Upon completion of the course, the student will be able to:
· Understand the flow of an acquisition from initial solicitation to deal close
· Build and construct a discounted cash flow model using public data
· Have the understanding to explain complex financial terminology in simple terms
· Analyze proposed current transactions
In pursuing these objectives, the course will:
- Use in class materials, text and cases
- Combine innovative theory and practice
- Combine the strategic with the tactical
4.3 Course Expectations and Delivery Mode
The course will be conducted by means of a sequence of class lectures. There will be one lecture each week. In each week will cover one or more core concepts.
Homework will be in the form of Excel spreadsheets, case review, and case studies.
Each week students will be assigned an individual excel exercise or research topic, which will be the focus of an in-class discussion.
