Form C4 Heriot-Watt University - Course Descriptor

1. Course C39CN 2. Course Mergers & Acquisitions 3. SCQF 9 4. Credits 15

Code Title Level
6. Course
5. School School of Management and Languages Co-ordinator Dr J-P Marney

7. Delivery: Edin SBC Orkney Dubai IDL Collaborative Partner Approved Learning Partner
Location &
Semester Sem 1 Sem……. Sem……….. Sem 1 Sem 1. Name…………………….....Sem..…... Name See attached list…Sem 1
8. Pre-requisites C38FN Corporate Financial Theory

9. Linked Courses
(specify if synoptic)
10. Excluded Courses

11. Replacement Courses Code: 12. Degrees for which MA in Business and Finance
this is a core course
Date Of Replacement:
13. The course may be 14. Available as an Elective?
delivered to: UG only PG only UG & PG Yes No

15. Aims

To develop a detailed understanding of issues relating to mergers and acquisitions, and corporate restructuring.

16. Syllabus

1. M&A definitions, terminology

2. Types of M&A, market for corporate control today
3. Motives for M&A, economic and non-economic
4. History of M&A, Merger Waves, UK & US. Analysis and explanations
5. Why grow by acquisition? M&A vs organic growth
6. Financial performance of merged companies: academic evidence, event studies
7. The merger process; friendly deals, hostile takeovers
8. Takeover defence strategies
9. Valuation of companies
10. Accounting for M&A, financing of acquisitions
11. Implementing the deal; reasons for success and failure
12. Regulation of the takeover market; UK and EU
13. Strategic alliances, joint ventures
14. Corporate restructuring, divestments, MBOs, corporate distress
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Form C4 Heriot-Watt University - Course Descriptor
17. Learning Outcomes (HWU Core Skills: Employability and Professional Career Readiness)

Subject Mastery Understanding, Knowledge and Cognitive Scholarship, Enquiry and Research (Research-Informed Learning)
Skills

After completing this course, students should be able to

o discuss takeover trends, processes and defences,

o critically evaluate the various motives for mergers and acquisitions and evaluate the wealth effect,
o understand and explain the regulation of takeovers in UK and EU,
o discuss agency problems in takeover situations,
o evaluate corporate restructuring decisions from the shareholder’s point of view,
o evaluate financial distress and bankruptcy costs.

Personal Abilities Industrial, Commercial & Professional Practice Autonomy, Accountability & Working with Others Communication, Numeracy & ICT

After completing this course, students should be able to

o construct and present, both oral and written, well balanced arguments,
o critically evaluate information gathered from a variety of sources,
o appreciate different sources of information, their relevance and value, and how they can be used in the area of finance,
o demonstrate a professional awareness of merger activity, not just in the UK, but also in Europe and the USA.

18. Assessment Methods 19. Re-assessment Methods

Method Duration of Exam Weighting (%) Synoptic courses? Method Duration of Exam Diet(s)
(if applicable) (if applicable)
Coursework 30% None Examination 2 hours Resit
Examination 2 Hours 70% None
ALPs only: Examination 2 Hours 100% Examination 2 hours Resit

20. Date and Version

Date of Proposal April 2011 Date of Approval by Date of September 2011 Version 1.0
School Committee Implementation Number

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