Course Policy Mergers and Acquisition

Mukesh Patel School of Technology Management & Engineering

School of Technology Management and Engineering

Course Policy Document

Course Name - (Code): Mergers and Acquisitions -

Program and Semester: MBA Tech/VII Pre-requisite Course : None

L T P C H
3 0 0 3 3
Academic Year: 2024-25 Credit Details:

Name of Course Faculty: Dr. Geetha Iyer Faculty associated with the course: -
Program: MBA Tech, Mumbai Campus 1. Dr. Geetha Iyer
Contact Details: [email protected] 2. Dr. Veerma Puri (Navi Mumbai)
Office Hours: 10:00 am to 4 pm

Pre-Course Activity:
Using GenAI, explore the following:
1. Concepts related to M & A, Types of M & A
2. Regulations in India with respect to M & A deal

Course link:

1. Introduction to the Course

1.1 Importance of the Course

1.1.1 Domain Relevance:

Mergers and Acquisitions (M&A) is a critical course for MBA students due to its
significant impact on corporate strategy, finance, and business growth. M&A is essential
for MBA students for the following reasons:

Understanding Business Expansion: M&A is a fundamental strategy for business

growth, allowing companies to expand their market share, enter new markets, acquire new
technologies, and enhance their product offerings.

Value Maximization: Students learn how M&A can create shareholder value by achieving
synergies, improving economies of scale, and optimizing resources, which are crucial for
corporate decision-making.
Course Policy Mergers and Acquisition

Mergers and Acquisitions as part of an MBA curriculum equips students with the strategic,
financial, and leadership skills needed to thrive in the corporate world.

1.1.2 Industry Relevance:

Mergers and Acquisitions (M&A) are highly relevant across various industries due to their
strategic role in shaping business landscapes, enhancing competitiveness, and driving
growth. In the tech industry, M&A is often used to acquire new technologies, intellectual
property, and talent (also known as "acqui-hiring"). Firms use M&A to expand into new
markets or product lines. M&A serves as a means for consolidation. Mergers and
Acquisitions are strategically vital across industries, providing pathways for growth,
innovation, competitive positioning, and market adaptation. They offer a dynamic approach
to achieving strategic objectives, making them a key focus area for businesses worldwide.

1.1.3 Objectives of the Course:

1) To explain the concepts related to mergers, acquisition and corporate restructuring
2) Compare various strategies
3) Compare business based on valuation

2. Course Outcomes (CO), Mapping with Program Outcomes (PO), and

Program Specific Outcomes (PSO)

2.1 Course Outcomes

After completion of the course, students will be able to -
1. Describe concepts related corporate restructuring
2. Identify the various strategies
3. Analyze business based on valuations

2.2 Program Outcomes(PO) the course contributed to:

2.2.1 PO-1: An understanding of global practices impacting organizations
2.2.2 PO-2: Critical thinking skills
2.2.3 PO-3: Understanding Business Domains and Integration with Technology
2.2.4 PO-4: Effective communication skills
2.2.5 PO-5: An understanding of ethical business models
2.3 CO-PO Mapping

PO1 PO2 PO3 PO4 PO5

CO1 1
Course Policy Mergers and Acquisition

CO2 1
CO3 1
Mapping Levels: 1- High, 2-Medium, 3-Low

3. Teaching-learning methodology
3.1 Instruction Plan
Assessment
Teaching COs
Lectur Blooms Resources and
Topic mapped
e No. Method * Level Evaluation

Mergers & MT-1,

Acquisition Concepts Discussion, Understand T1 Term
1 CO1
Forms of Corporate Powerpoint Chapter 1 : pp 3-8 Work,
Restructuring Chapter 2 : pp 9-32 TEE

M & A as Growth Discussion,

Strategy Powerpoint MT-1,
Understand T1
Term
2 Mergers & Chapter 2 : pp 33-44 CO1
Work,
Acquisition Motives Chapter 3 : pp 45-57
TEE
& Synergies

Take over and defense Discussion, MT-1,

T1
tactics Powerpoint Term
3 Apply Chapter 5 : pp 58-68 CO2
Intent of Target Work,
Chapter 6 : pp 69-71
Companies TEE

T1 CO2
Chapter 7 : pp 75-99
Self – Understand Term
Legal framework Chapter 8 : pp 100-
4 Learning, Work,
110
Handout TEE
Chapter 9 : pp 111-
164

T1 MT-2,
Accounting for Numerical Term
Chapter 12 : pp 191-
5 Amalgamations & Problems, Apply CO2
207 Work,
Demergers Case lets
TEE

Discussion, Understand T1 MT-2,

Funding of Powerpoint Chapter 13 : pp 229- Term
6
Acquisitions 243 CO2 Work,
TEE

Discussion, Understand T1 Term

7 Leveraged Buyout Powerpoint Chapter 14 : pp 244 - Work,
CO2
248 TEE

8 Valuation of Target Numerical Analyse T1 CO3 MT-2,

Course Policy Mergers and Acquisition

Companies Term
 Asset based Work,
method TEE
Problems, Chapter 16 : pp 249 -
 Relative valuation
Case lets 256
method
 Dividend discount
Model

Valuation of Target MT-2,

Numerical T1 Term
Companies Analyse
9 Problems, Chapter 16 : pp 259 - CO3
 Enterprise DCF Work,
Case lets 276
Model TEE

Corporate
Governance Self – Term
Understand CO3,
10  Sarbanes Oxley Act Learning, Internet References Work,
 Corporate Handout CO4 TEE
Governance

4. Assessment and Evaluation Scheme

Internal Continuous Assessment (ICA) (50 Marks)

Class Tests (20 Marks) Term Work-Group Project (30 Marks)

Assessment Class Test-1 Class Test-2 Project Assignment

Component
(Group activity) (Group activity)
Marks 10 10 20 10

Timelines (7th October (18th Nov 2024- November 16 2024 24 October, 2024
th
2024-12 23rdh Nov 2024)
October 2024)

1. Project : Valuation of Company for Proposed of M & A Deal – (20 marks)

This Project to be done in a group of 5 students each

Goal:
i. This project provides you to an opportunity to apply the
valuation techniques we learnt in our course in valuation of
real companies. Each group need to value a distinct publicly
listed company in India using the valuation techniques
discussed in the course. You can have anyone of the following
motivations for valuation of the company – investment analyst
(need to provide buy, sell or hold recommendation the
company’s shares), M&A (a target company trying to assess
Course Policy Mergers and Acquisition

its own value or an acquirer trying to find the value of a

target), CFO (trying to value shares of his own company to
take a buyback decision or for a Subsequent Public Offering)
etc.
ii. No two groups should value the same company.
iii. Each group should select a distinct publicly listed company
with easily accessible public information concerning its
financial statements as well as information on its business
overviews, financial statements, share prices and bonds.
iv. You should not select the company which has been in losses
for last many years (we have not covered the valuation of the
loss making companies).
v. An indicative template for aspect to be covered for the
Valuation of the company is provided below. Please modify it
to fit your needs. Please note that you are not required to
cover EVERY aspect of the recommended template. Use
selectively at your own discretions.
a. Strategy Analysis: The future competitive position and
growth opportunities of your company are to be assessed.
You should analyze your firm’s competitive position by doing
a SWOT analysis and through use of Porter’s Five Forces
Framework. You also need to gather information about firm’s
management and its future plans to do a meaningful strategy
analysis.
b. Historic Financial Analysis: This analysis helps in developing
insights into historical growth trends of revenues, expenses,
assets and liabilities which when combined with the strategy
analysis helps in making suitable assumptions for the FCFF
model.
c. Projections of Financial Statements
d. FCFF Valuation Model: Company is valued using FCFF
model by use of following inputs
i. FCFF during the explicit horizon period ( atleast 5
years )
ii. WACC of the Firm: What would be the capital structure
of firm? What is Ke? What is Kd? What tax rate is used
for post-tax Kd?
iii. Terminal Growth Rate beyond explicit horizon
e. Comparable Firm Valuation: Valuation using price
multiples (comparable companies); Provide reasons why you
select certain ratios
f. Conclusion: proposed action (buy, sell, hold etc.) and its
justification
 Course Policy Mergers and Acquisition

Assessment will be based on Presentation and Project should be

submitted on Teams

2. Group Assignment – 10 Marks

This Project to be done in a group of 5 students each

The last date of the assignment submission is October 24, 2024.

The details of the assignment are as follows:

Each Student has to identify a recent M & A deal – 1 Indian and 1 International (not more
than five years old) and examine the following aspects of the deal.
a. Introduction and background
b. Types and motives of deal
c. Rationale and strategies considered in the deal.
d. Regulatory considerations
e. Necessary restructuring and divestment
f. Recommendation of financing methods of the deal
g. Announcement date of the deal
h. Market reaction and performance post to the deal announcement and post the deal
completion
i. Post-merger integration of the deal

Assignments should be submitted on Teams

Rubrics for Evaluation

Crit Below Expectations Meets Exceeds Expectation

erio Expectations
n (Less than 40%) (More than 60%)
(40%-60%)

Clarity Not able to explain Explains points Explains points explicitly

points clearly. Lacks clearly; points relate with specific explanatory
focus and points put to overall argument. detail backed up with
forth do not relate to the relevant
overall/main argument research/information/ex
or idea. ample; points relate and
support the overall
argument.

Organiz Presents information in a Presents information is Presents information in

ation cluttered manner with in a logical sequence. a clear and logical order
 Course Policy Mergers and Acquisition

Gather Struggles to pinpoint the Clearly identifies the Demonstrates a

Relevan information needed. information required. sophisticated
t Gathers information from Gathers information understanding of what
Informa one source. Minimal from multiple valid and
information is needed.
tion evidence of reliable sources.
search/selection criteria. Evidence of Gathers extensive
search/selection criteria. information from a
variety of valid and
reliable sources
including journals, texts,
etc., specific to the
subject. Clear evidence
of Search/selection
criteria.

Select Has limited knowledge Selects and uses Selects and uses
and Use on selecting and using relevant concepts and relevant concepts and
Relevan relevant concepts and frameworks. Requires frameworks. Needs no
t minimal assistance on assistance in selecting
frameworks. Requires
Concep choosing relevant relevant concepts and
extensive assistance in concepts and frameworks.
ts and
Framew selecting relevant frameworks.
orks concepts and
Frameworks.

Evaluat Little evidence of Considers context, Considers context, data,

e evaluation and data, assumptions, and assumptions, and
Informa identification of evidence. Integrates evidence. Eloquently
tion for implications. Minimal multiple viewpoints. integrates multiple
Effectiv
evidence of selection Implications are viewpoints. Implications
e
Decisio based on quality or developed. Evidence of are clearly developed.
n Appropriateness. selection based on Advanced evidence of
Making quality Or selection based on
appropriateness. quality or
appropriateness.

4.1 Internal Continuous Assessment (ICA) – 50 marks

Term Work will have a weightage of 30 marks for ICA.

Report and Assignment submission is required to be submitted on time.

Penalty will be levied for late submissions.

4.2 Term End Examination (TEE) – (50 marks scaled to 50)

TEE conducted at the end of the semester will be for 50 marks (2-hour duration).

There will be 7 questions (each question will be 10 marks).

Course Policy Mergers and Acquisition

Q1 will be compulsory and any 4 from the remaining to be solved.

4.3 Course Passing Criteria

4.3.1 ICA (50 marks) – No minimum marks
4.3.2 TEE (100 marks scaled to 50) – 40% required for passing
4.3.3 (ICA + TEE) (100 marks) - 40% required for passing

4.4 Assessments and Mapping to Course Outcomes

Internal Continuous Assessment (ICA) Term End

Examinatio
n (TEE)
Course MT-1 MT-2 Project & Assignment TEE
Outcomes 10 Marks 10 Marks Presentation 10 Marks
20 Marks
CO-1 Y Y
CO-2 Y Y Y
CO-3 Y Y Y

5. Tutorial Plan
This course does not have any tutorial.

6. Course Material
I. Text Books

1. Godbole, P., Mergers, Acquisitions and Corporate Restructuring , 2nd Edition,

latest reprint Vikas
Publishing House, New Delhi, 2013.
2. Patrick, G. A., Mergers, Acquisitions & Corporate Restructuring , 5th Edition,
Wiley Publishing, Delhi,
Course Policy Mergers and Acquisition

2012.

II. Reference Books

1. Damodaran, A., The Little Book of Valuation , Wiley Publishing, Delhi, 2011.
2. Chandrashekar Krishnamurthi & Vishwanath S R Mergers, Acquisitions &
Corporate Restructuring, 8th Edition, Response Books, SAGE Publication, 2013.

References and relevant material will be uploaded on MSTeams by faculty every week.

7. GenAI Usage

7.1 Pre-class Activity:

Reading about the relevance of each topic for discussion in the class.

7.2 In-Class Activity:

Use GenAI to find case studies and discuss M & Deals.

7.3 Assignments

GenAI is not to be used for doing Assignments given by faculty.

7.4 Challenging Problems

GenAI is permitted to be used. Students need to cite the references used.

8. Academic Integrity Statement

Original work expected from students for all of the assigned assessment work. Copying in
any form not acceptable and will invite strict disciplinary action. Evaluation of
corresponding component will be affected proportionately in such cases. Plagiarism
detection software will be used to check plagiarism wherever applicable. Academic integrity
is expected from students in all components of course assessment.
Course Policy Mergers and Acquisition

* - Only Teaching Method in the Instruction Plan for the course may vary
for different faculty teaching the course, rest of the Course Policy
Document will not change.