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: 2021/2

Module Convenor: Miss Dina Ghanma
Email: dina.ghanma@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 7-8 of the spring term.

One group project to be submitted in week 1-2 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:

The below information applies to students on taught programmes except those on Postgraduate Flexible programmes. Penalties for late submission, and the associated procedures, which apply to Postgraduate Flexible programmes are specified in the policy “Penalties for late submission for Postgraduate Flexible programmes”, which can be found here: http://www.reading.ac.uk/web/files/qualitysupport/penaltiesforlatesubmissionPGflexible.pdf
The Support Centres will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:
50% weighted average mark

Reassessment arrangements:

Resubmission 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 December 2021