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M&A-X10
PGDM-PT 2010-13: Term-VII

Mergers & Acquisitions
Credits 3
Faculty Name P.K.Mohanty
Program Ex-PGP (PT)
Academic Year and Term 2010-13, Term-VII


1. Course Description Corporate mergers and acquisitions have become universal practices around the globe. In a globalised era, mergers take place not only within the nation but also across the border for survival, growth, expansion and achieving different objectives. The opening up of Indian economy is also supportive of these activities. The ever increasing number of M & A activities only suggests that this is going to stay. The objective of this course is to familiarize the participants with various aspects of mergers and acquisitions.

2. Student Learning Outcomes (typically 3-5 bullet points)

· Be able to appreciate why and how M&A takes place
· Be able to understand the significance of and different approaches to valuation in the context of M&A
· Be conversant with legal provisions governing M&A
· Be able to understand the challenges of integration
3. Required Text Books and Reading Material
i. Mergers and Acquisitions by Rajinder S.Arora, Kavita Shetty, and Sharad R. Kale(OXFORD)
ii. Mergers, Acquisitions and Corporate Restructuring by Prasad G. Godbole(Vikas)
iii. Mergers, Acquisitions and Corporate Restructuring by Chandrasekhar Krishnamurti & S.R.Viswanath ( Sage Publication )
iv. Creating Value from Mergers and Acquisitions by Sudi Sudarsanam(Pearson)
v. Handouts

4. Tentative Session Plan
i. Session 1&2: Main Forms of Corporate Restructuring, Motives behind Mergers and Acquisitions, Strategies for entering a new market, Value creation strategy in M&A

ii. Session 3: Legal framework governing M&A- Companies Act, 1956, SEBI Takeover Code, Competition Act
iii. Session 4-6: Valuation of Target Companies: Purpose and objectives of valuation, Valuation as a cause of M&A failure, Net Asset Valuation Model, Dividend Valuation Model, Price Earnings Ratio Model, Free Cash Flow Valuation Model, Economic Gains and Costs of M&A, Share Exchange Ratios, Valuation of Synergy
iv. Session 7: Leveraged Buy-out
v. Session 8: Due Diligence process in M&A,
vi. Session 9: Accounting issues- Accounting for Mergers and Acquisitions,
vii. Accounting for Demerger, Comparison between Indian GAAP and IFRS-3
viii. Session 10-11: Taxation Issues in M&A- Capital Gains Tax, Carry
ix. Forward and Set off of Accumulated Losses and Unabsorbed Depreciation,
x. Slump Sale etc.
xi. Session 12: Takeover Defenses- Friendly versus Hostile Takeovers,
xii. Takeover tactics, Successful Takeover Tactics in India, Defense Tactics
xiii. Session 13: Deal structuring and Financing Strategies, Funding of
xiv. Acquisitions- Methods of effecting payment consideration
xv. Session14 &15: M&A Integration

5. Evaluation
i. Quiz: 30 marks
ii. Assignment 20 marks iii. End-term exam.: 50 marks 6. Academic Integrity

Created By: Debasis Mohanty on 05/09/2012 at 02:47 PM
Category: ExPGP-III Doctype: Document

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