This course provides an overview of corporate development and the use and implication of Mergers, Acquisitions and Divestments on the lifecycle of the company. The measurement and use of value creation in a company is taught, including the use of discounted cash flow analysis and other valuation methods in order to provide a framework for assessing and undertaking investments in projects or target companies. An assessment and understanding of shareholder value is covered.
Topics include understanding and development of business strategy; the process of deciding on and nderstanding the rationale for mergers, acquisitions and spinoffs; the use of option theory to allow the company to make the decision to initiate, maintain or abandon a project; background and historical trends of M&A and how to measure these trends; market reactions to a takeover; the Takeover Process (Valuation, The Offer, Merger “Arbitrage” (value of a merger to the acquiring and acquired entity), Tax and Accounting Issues, Board and Shareholder Approval; Takeover Defenses (Poison pills, Staggered Boards, White Knights, Golden Parachutes , Recapitalization, Other Defensive Strategies); and Regulatory Approval.