25807 Mergers and Acquisitions

Faculty of Business: Finance and Economics
Credit points: 3 cp

Subject level: Postgraduate

Result Type: Grade and marks

Requisite(s): 25741 Capital Markets OR 25765 Corporate Finance
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.

Handbook description

This subject examines all aspects of the process by which one organisation is subsumed into another. Topics covered include valuation, leveraged buyouts, asset sales and restructuring and defeasance. Legal and tax aspects of mergers and acquisitions are also examined.

Subject objectives/outcomes

On successful completion of this subject students will be able to:

Analyse company mergers
Evaluate the costs, benefits of mergers and acquisitions
Apply financial techniques involved in mergers and acquisitions.

Contribution to graduate profile

Mergers and Acquisitions are important processes of economic rationalisation. This course addresses all of the important issues arising from this process.

Teaching and learning strategies

The subject will be taught using a combination of lectures and workshops. These classes will be supplemented with both printed and electronic learning materials and resources. The UTS web-based communication tool (UTS Online) will be used to share information and encourage interaction between staff and students. Students will also use appropriate computer software such as spreadsheets and word processors to complete assigned tasks.

Content

Economics of Mergers and Acquisitions
Choosing and valuing a target
Financial Takeovers-Leveraged Buyouts
Asset Sales and Restructuring
Defeasance
Management Buyouts
Legal and Taxation Aspect.

Assessment

Assignment (Individual)	40%
The assignment is designed to assess students' understanding of the theories and concepts to demonstrate that students have met objectives 1-3.
Final Exam (Individual)	60%
This exam, which may consist of multiple choice and short answer questions, will test students' understanding of the theory and their ability to apply the theory to mergers and acquisition decisions. This will enable students to demonstrate that they have met objectives 1-3.

Recommended text(s)

Book of Readings

Indicative references

Schwert, G W., and Smith, C, W. (1992). Empirical Research in Capital Markets, McGraw Hill.

Van Horne, J C., Wachowicz, J., Davis, K and Lawriwsky, M,. (1995). Financial Management and Policy in Australia, 4th Edition, Prentice Hall.