Unit 1

An over view of mergers and acquisitions – Various forms of corporate restructuring -growing need for corporate restructuring – the concept of strategic planning in corporaterestructuring – Mergers and acquisitions as strategic choice – alternatives to mergers andacquisitions-strategicalliances-jointventures.

Unit 2

Various types of mergers – the process of mergers and acquisitions – negotiation definingthepurchaseprice-calculatingtheexchangeratio-structuringthedealduediligencetobedone-participantsintheprocessofmergersandacquisition.
Varioustheoriesofmergersandacquisition-efficiencytheories-informationandsignalling-marketpower-taxconsiderations-freecashflowhypothesis-agencyproblems and managerialism – value increase by redistribution.Problems on calculatingpurchaseprice,exchangeratioandrelatedmatters.

Unit 3

Methods of valuation of firms – equity valuation model – discounted cash flow model – firmvaluation model – comparable company approach – option pricing method – chasing theright valuation method – accounting for mergers and acquisitions – accounting as perAccountingstandards14reasonsforfailuresofmergersandacquisitions-rulesforsuccessfulmergers.Problemsonvaluationoffirmandaccountingformergersandacquisitions.

Unit 4

Sell off and divestitures – factors involved in divestiture decisions – explanations andrationale for sell offs – different types of sell offs – reasons for divestitures – going privateand leveraged buyouts – going private transactions – leveraged buyouts – sources of LBOfinancing-characteristicofaleveragedbuyoutcandidatemanagementbuyout-managementbuyin-leveragedcashouts-reversemergers-taxconsiderationsindemerger.

Unit 5

Takeover defenses – friendly vs. hostile – takeovers – preventive anti-takeover measures -corporatecharteramendments-goldenparachute-activeanti-takeoverdefenses regulation of takeovers in India-evolution of regulatory control of mergers and acquisitions in India-complianceunderTheCompaniesAct,1956,SEBIregulations-ImplicationsunderIncomeTaxAct,1961-matterspertainingtoSec72AoftheIncomeTaxAct,1961.Thestudieswillhavetobeconductedwiththehelpoflivecasestudies.

Course Objective: To provide an understanding about the concept and theories of mergers and acquisitions and the regulatory framework for takeovers.

Course Outcomes

Textbook:

1. PublicationsonMergersandAcquisitionsbyICFAI
2. Rajesh Kumar – Mergersand Acquisitions, TMH

Reference Books:

1. Gurminder Kaur – Corporate Mergers and Acquisitions, Deep and DeepPublication
2. RavindharVadapalli–Mergers,AcquisitionsandBusinessValuation,ExcelBooks