SVKM’s Narsee Monjee Institute of Management Studies
Name of School – SBM, Bangalore
Program: MBA Trimester V
Course/Module Investment Banking Module Code:
:
Teaching Scheme Evaluation Scheme
Lectur Practic Term End
Tutorial Internal
e al Examinations
(Hours Continuous
(Hours (Hours Credit (TEE)
per Assessment (ICA)
per per (Marks- 40)
week) (Marks - 60)
week) week) in Question Paper)
Marks Scaled to Marks Scaled to
3 - - 3
-60- -40-
Pre-requisite:
Corporate Finance;
Financial Modeling in Excel
Objectives:
Challenges associated with each phase of the M&A process from developing acquisition
plans through post-closing integration.
Application of valuation techniques and financial modeling tools to evaluate mergers
and acquisitions.
Corporate restructuring and alternative ways to exit businesses, alliances/ joint ventures
as alternatives to mergers and acquisitions/Commonly used takeover tactics and
defenses.
Investment Banking activities and help participants understand various functions and
activities of investment banks.
Outcomes: After completion of the course, students would be able to :
1. Analyze a merger and various tactics adopted by corporates;
2. Evaluate a merger deal and estimate synergy;
3. Analyze corporate restructuring methodologies and alternative ways of exiting
businesses;
4. Apply the principles and functions of Investment Banking.
Detailed Syllabus: ( per session plan )
Sessio Description Duratio
n n in
Hours
1-3 Mergers and Acquisitions Process 4.5
Why merge?
Why acquire?
Reasons to M&A
How to plan, implement and close an acquisition
M&A activity and Regulatory environment in India
4 M&A Valuation 1.5
Projections of Cash flow
Standalone value
Value with merger
How to value synergies
5 M&A valuation continued 1.5
Identify the synergy effects
SVKM’s Narsee Monjee Institute of Management Studies
Name of School – SBM, Bangalore
Apply synergy in the valuation process
6 Methods of Valuation for M&A (other than DCF) 1.5
Apply Relative Valuation
Market multiples
Transaction multiples
7 Real option valuation for M&A 1.5
Apply real options and flexibilities in M&A setting
8 Analysis & Valuation of Privately-held firms 1.5
Apply Financial Modeling for privately-held companies.
9 Types of payment methods for M&A 1.5
Evaluate Issues such as:
Cash versus Stock
Fixed shares deal or Fixed value deal
How can companies choose the method of payment?
How to finance a deal?
10 Takeover defense strategies 1.5
Evaluate various takeover defense strategies adopted by
companies
11 Alternative Business & Restructuring strategies 1.5
Analyze Alliances & Joint Ventures; Deal structuring for alliances
and joint ventures
12 Alternative Exit Strategies: Spin-Offs, Carve-Outs etc. 1.5
Evaluate alternative exit strategies
13 Investment Banking functions (Other than M &A) 1.5
Post-crisis global investment banking, Investment banking business
Understand global investment banking
14 Regulation of Securities Industry: 1.5
Regulation of Securities industry in India, USA and other countries;
Important security market legislations – Recent developments.
Evaluate regulation of Securities industry
15-16 Financing Alternatives: 3
Raising capital from domestic markets
Evaluate issues such as:
IPO-vs-FPO;
Role of Investment Banks: Distribution alternatives, Shelf life
registration, Green Shoe option etc.
17 Raising capital from Global Markets 1.5
Global equity markets – Global debt markets – Raising Capital through
ADRs & GDRs;
Analyze:
Foreign bonds,
ADRs/GDRs
18 Financial innovation and Financial Engineering 1.5
Innovation in Debt Securities. Role of investment banks. Infrastrcuture
Funding and Contemporary Issues.
19-20 Project Presentations 3
Student presentations
Total 30
Text Books:
SVKM’s Narsee Monjee Institute of Management Studies
Name of School – SBM, Bangalore
Mergers, Acquisitions, and Other Restructuring Activities, Academic Press, 11e, Donald
M. DePamphilis [DDP], Academic Press, 2021.
An Introduction to Investment Banking, Private Equity and Hedge Funds, Stowell, David
P. [DS], Academic Press, 2010.
Reference Books:
Mergers, Restructuring and Corporate Control, J. Fred Weston, Kwang S. Chung, Susan E.
Hoag, 1990, PHI Learning Private Limited;
Valuation for Mergers, Buyouts and Restructuring, Enrique R. Arzac, 2e, Wiley, 2008;
Mergers, Acquisitions and Corporate Restructurings, Patrick A. Gaughan, 7e, Wiley,
2018;
Master Guide to Mergers & Acquisitions in India, Tax & Regulatory, EY India, 2016;
Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions,
Rosenbaum, Joshua & Pearl, Joshua, Wiley, 2009;
Investment Banking: Concepts, Analysis and Cases, Subramanyam, Pratap G., McGraw
Hill, 2008.
The Business of Investment Banking: A comprehensive overview, Liaw, Thomas K. John
Wiley & Sons, Inc, 2006.
Any other information :
Total Marks of Internal Continuous Assessment (ICA) : 60 Marks
Distribution of ICA Marks :
Description of ICA Marks
Group Assignments 20
Quizzes (Two) 20
Project Work (Group) 20
Term-End Exam 40
Total Marks : 100
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Signature Signature
(Prepared by Concerned Faculty/HOD) (Approved by Dean)
