Course

Unit 1

Corporate strategies for mergers and acquisitions

Use of Mergers and Acquisitions for Corporate Expansion – Evaluation of Acquisition Proposals – Developing an Acquisition Strategy – Choosing Appropriate Target – Creating Synergies – Reasons for Failure – Reverse Takeovers – Global Regulatory Framework – Key Aspects of Takeover Regulation – Defensive Tactics for Hostile Takeover

Unit 2

Business Organisation and Financial Reconstruction

Business Re-Organization – Meaning and Types – Divestments, Demergers and Spin-Offs, Management Buy-Outs and Buy-Ins, Firm Value – Reconstruction Schemes – Types of Financial Reconstruction – Financial Reconstruction and Firm Value – Leveraged Buy-Outs – Market Response to Financial Reconstruction

Unit 3

Business Valuation

Principles of Business Valuation – Asset-Based Models – Market-Based Models – Cash-Based Models – Valuation of High Growth Start-Ups& firms with Product Options – Methods of Financing Mergers – Assessing a Given Offer – Effect of an offer on Financial Position and performance

Unit 4

Currency risk management

Role of treasury in financial risk management – organizing treasury function (centralized v/s decentralized) – transaction, translation & economic risks related to currency fluctuations – currency hedging tools (internal – currency of invoice, leading & lagging, matching, netting and external – forwards, futures, options & swaps, money market) candidates are expected to illustrate working knowledge of setting up the hedging –

Unit 5

Interest rate risk management

Managing interest rate risk through different techniques (internal – matching & smoothing, asset/liability management, external – forward rate agreement (FRA), futures, options and swaps)

Course outcome:

Students will be able to

CO1: Assess and plan acquisitions and mergers as an alternative growth strategy.

CO2: Apply valuation techniques to value the business.

CO3: Evaluate and advise on alternative corporate re-organisation strategies.

CO4: Apply and evaluate alternative advanced currency risk management Techniques.

CO5: Apply and evaluate alternative advanced interest rate risk management Techniques.

Learning outcomes:

LO1: Understand valuation techniques to value the business either for sale for purchase. LO2: Understand the various growth strategies.

LO3: Understand reorganization and construction techniques for the business to relieve from stagnation or limited growth or a potential business failure.

LO4: Evaluate a suitable interest rate risk hedging technique. LO5: Evaluate a suitable currency risk hedging technique.

Reference Textbooks:

• ACCA Kaplan AFM Study text and Revision kit 2021-22
• Fundamentals of Financial Management by Eugene Brigham Joel F. Houston
• Corporate Finance Theory and Practice by Maurizio Dallocchio, Yann Le Fur, Pascal Quiry, Antonio Salvi, Pierre Vernimmen
• Multinational Business Finance by Eiteman, David Stonehill, Arthur I. Moffett, Michael H.