Mergers, Acquisitions and Corporate Governance

Course code GSBS6146Units 10Level 6000Faculty of Business and LawNewcastle Business School

The course introduces students to the general principles of mergers and acquisitions. It provides a short overview of major historical trends in M&A, legal perspective and tools used to perform M&A activities. It continues analysing strategic M&A related decisions. Special emphasis has been placed on hostile takeovers and measures available to targeted companies to repel the attack. The second part of the course elaborates junk bond markets and corporate restructuring. At this state we will also introduce the study on varying ownership structures across the globe, which impacts not only the M&A market but also firm policy decisions. Finally, the course will provide quantitive tools indispensable for M&A by focusing on firm valuation, financial analysis and accounting treatment of M&A.

Not available in 2015

ObjectivesStudents are expected to:
- Become able to apply accounting and corporate finance tools in the valuation of M&A deals
- Demonstrate capability to re-arrange balance sheets of firms involved in M&A and draw
relevant conclusions
- Use accounting and financial databases
- Critically evaluate major M&A deals
- Analyse business decisions seconded by target and acquiring firms
- Elaborate corporate governance provisions
- Write concise reports on critical firm management decisions
- Be ready to work as an independent M&A strategic manager as well as an integral part of the
M&A team
Content1: Introduction to mergers and acquisitions and major tools used to achieve these goals
2: Legal perspective and a brief historical overview
3: Strategic decisions on M&A
4: Hostile takeover tactics
5: Antitakeover measures
6: Leveraged buyouts
7: The analysis of junk bond markets and practices
8: Corporate restructuring
9: International comparison of ownership structure and its potential impact on inter-firm
10:Essential financial analysis of mergers and acquisitions
11:Firm value
12:IASB standards in analysing business combinations
Replacing Course(s)Not Applicable
TransitionNot applicable
Industrial Experience0
Assumed KnowledgeCo-requisite: GSBS6130 Corporate Finance or GSBS6145 International Financial Management
Modes of DeliveryInternal Mode
Teaching MethodsCase Study
Assessment Items
Essays / Written Assignments
Examination: Formal
Contact HoursLecture: for 3 hour(s) per Week for Full Term