ICM227-Mergers and Acquisitions

Module Provider: ICMA Centre
Number of credits: 10 [5 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2019/0

Module Convenor: Dr Carol Padgett

Email: c.padgett@icmacentre.ac.uk

Type of module:

Summary module description:

This module tracks the M&A process from the strategic decision to undertake mergers and acquisitions, through the deal-making process and then considers the extent to which M&A activity produces the desired results.


Aims:

To enable students to understand why companies decide to expand through acquisition, how they find and value targets, decide how to pay for their acquisitions and then integrate them into the organisation.


Assessable learning outcomes:

By the end of the module students will be able to value companies using discounted cash flow and multiples. They will also understand how to conduct event studies and to interpret the findings of empirical research on M&A.


Additional outcomes:

Students will have the opportunity to work in teams and to improve their presentation skills.


Outline content:


  • Overview of the M&A process

  • Due diligence and valuation

  • Valuation and payment methods

  • Announcement effects and legal aspects

  • Integration and long-run outcomes


Brief description of teaching and learning methods:

Lectures will be used to present and explore theory and evidence. Seminars will be used to discuss problem sets and cases.


Contact hours:
  Autumn Spring Summer
Lectures 10
Seminars 5
Guided independent study:      
    Wider reading (independent) 20
    Wider reading (directed) 10
    Preparation for presentations 2
    Preparation for seminars 10
    Revision and preparation 10
    Group study tasks 10
    Carry-out research project 15
    Reflection 8
       
Total hours by term 0 100 0
       
Total hours for module 100

Summative Assessment Methods:
Method Percentage
Project output other than dissertation 50
Class test administered by School 50

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

One in-class test held in week 7 of the spring term.



One group project to be submitted in week 1 of the summer term


Formative assessment methods:

Seminar questions are assigned for each class. The seminar leader will facilitate discussion and offer feedback.


Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Assessment requirements for a pass:
50% weighted average mark

Reassessment arrangements:

Reassessment of Project 


Additional Costs (specified where applicable):
1) Required text books: This module does not have a single textbook but several recommended texts:
1. Bruner, Robert (2004) “Applied Mergers and Acquisitions. University Edition”, Wiley Finance
ISIN 0-471-39534-X
Price: £ 56.91
2. Bruner, Robert (2006) “Case Studies in Finance, 5e”, Mc-Graw Hill (4 copies available at the library)
ISBN-10: 0071267522, ISBN-13: 978-0071267526
Price: £6.93
3. Koller, Goedhart, Wessels (2010) “Valuation: Measuring and Managing the Value of Companies”, Fifth Edition, John Wiley and Sons.
ISBN 978-0-470-42470-4
Price: £47.44
4. Vernimmen, P. et al (2014) “Corporate Finance: Theory and Practice, 4e”, Wiley.
ISBN-10: 1118849337
ISBN-13: 978-1118849330
Price: £41.99
2) Specialist equipment or materials:
3) Specialist clothing, footwear or headgear:
4) Printing and binding:
5) Computers and devices with a particular specification:
6) Travel, accommodation and subsistence:

Last updated: 8 April 2019

THE INFORMATION CONTAINED IN THIS MODULE DESCRIPTION DOES NOT FORM ANY PART OF A STUDENT'S CONTRACT.

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