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ISCTE-IUL  >  Education  >  LFC , LGM

Mergers and Acquisitions and Company Valuation (1 º Sem 2016/2017)

Code: L0641
Acronym: L0641
Level: 1st Cycle
Basic: No
Teaching Language(s): Portuguese, English
Friendly languages:
Be English-friendly or any other language-friendly means that UC is taught in a language but can either of the following conditions:
1. There are support materials in English / other language;
2. There are exercises, tests and exams in English / other language;
3. There is a possibility to present written or oral work in English / other language.
1 6.0 0.0 h/sem 36.0 h/sem 0.0 h/sem 0.0 h/sem 0.0 h/sem 0.0 h/sem 1.0 h/sem 37.0 h/sem 113.0 h/sem 0.0 h/sem 150.0 h/sem
Since year 2016/2017
Pre-requisites None
Objectives O1 - Classify merger and acquisition (M&A) activities based on forms of integration and relatedness of business activities;
O2 - Explain common motivations behind M&A activity;
O3 - Explain the relation between merger motivations and types of mergers;
O4 - Contrast merger transaction characteristics by form of acquisition, method of payment, and attitude of target management;
O5 - Distinguish among pre-offer and post-offer takeover defense mechanisms;
O6 - Calculate and interpret the Herfindahl-Hirschman Index and evaluate the likelihood of an antitrust challenge for a given business combination;
O7 - Use the discounted cash flow, economic value added, comparable company, and comparable transaction analyses for valuing a target company;
O8 - Explain common reasons for restructuring.
Program P1 - M&A: Definitions and Classifications
P2 - Motives for Merger
P3 - Transaction Characteristics
P4 - Takeovers
P5 - Valuation: Discounted Cash Flow, Economic Value Added, Comparable Company Analysis, Comparable Transaction Analysis
P6 - Regulation
P7 - Acquisition Process
P8 - Company Restructuring
Evaluation Method Regular grading: active participation (15%), group assignment (35%) and test (50%).
To pass, the final grade must be equal or larger than 9,5 points.

Students who choose to do the exam for 100% have two exam seasons (1st and 2nd exams). Students can try to improve their grade only in the second exam. If students try to improve their grade in the first exam, they lose automatically the regular evaluation grade. To pass, the final grade must be equal or larger than 9,5 points.
Teaching Method 1 - Lectures with presentation of the topics using PowerPoint and blackboard, appealing to practical cases and oral participation of the students;
2 - Individual problem sets to practice at home, with solutions made available;
3 - Problem sets solved in class, making use of tailor-made spreadsheets;
4 - Pointers regarding the individual work to be carried out outside the classroom.
Observations
Basic Bibliographic - Class slides and case studies;
- Other materials.
Complementar Bibliographic - Sherman, A. (2010) - Mergers and Acquisitions from A to Z, 3rd Edition, AMACON
- Reed, S., Lajoux, A. and Nesvold, H. (2007) - The Art of M&A, 4th Edition, McGraw-Hill Education
- Lajoux, A. and Elson, C. (2010) - The Art of M&A: Due Diligence - Navigating Critical Steps and Uncovering Crucial Data, 4th Edition, McGraw-Hill Education
- Ferreira, D. (2002) - Fusões, Aquisições e Reestruturações de Empresas - Volume 1, 1st Edition, Edições Silabo (PT)
- Ferreira, D. (2002) - Fusões, Aquisições e Reestruturações de Empresas - Volume 2, 1st Edition, Edições Silabo (PT)
- Brealey, R., Myers, S. and Allen, F. (2007) - Principles of Corporate Finance, 9th Edition, McGraw-Hill / Irwin
- Damodaran, A. (2006) - Damodaran on Valuation: Security Analysis for Investment and \Corporate Finance, 2nd Edition, Wiley Finance
- McKinsey & Company Inc, Koller, T., Goedhart, M. and Wessels, D. (2010) - Valuation: Measuring and Managing the Value of Companies, 5th Edition, Wiley