30488 - APPLIED VALUATION ANALYSIS FOR MERGERS AND OTHER BUSINESS COMBINATIONS

Students are recommended to have completed a first level introductory course in Financial Accounting.

The course contributes to students understanding of what filings are required to complete an M&A transaction.

• Anatomy of a typical merger – mini case study.
• Overview of Mergers Analysis – methods to identify prospective targets using financial statements.
• Brief outline of US and European financial reporting requirements FAS 141 and 141R and IFRS 3 so you understand what reports an acquirer has to file with regulators before a new business combination can be approved. 
• Required filings to raising finance to publicly fund transactions.
• Obtaining a purchase price and creating a Pro Forma Valuation.
• Special topic on fair values, goodwill and intangibles valuation.
• Some applied examples.
• Constructing projections including accretion and dilution.
• Ex-post analysis of deals.

• Ability to summarize key financial components of an M&A deal.
• Identify required filings when raising finance for the M&A deal.
• Learning how to construct a purchase price allocation and creating a Pro Forma ValuationUnderstand how intangibles are valued.
• Learn how to construct projections of Earnings Per Share and evaluating whether they are accretive or dilutive.

• Construct ProForma financial statements for an M&A deal.

• Face-to-face lectures
• Group assignments

3 Group assignments:

• Anatomy of an M&A deal with special reference to synergies.
• Required assumptions to produce Pro Forma financial statements.
• Expost evaluation of the disclosed Earnings Per Share.