Course 2019-2020 a.y.

30488 - APPLIED VALUATION ANALYSIS FOR MERGERS AND OTHER BUSINESS COMBINATIONS

Department of Accounting

Course taught in English
Go to class group/s: 31
BEMACS (6 credits - I sem. - OP  |  SECS-P/07)
Course Director:
MILES BERNARD GIETZMANN

Classes: 31 (I sem.)
Instructors:
Class 31: MILES BERNARD GIETZMANN


Class-group lessons delivered  on campus

Suggested background knowledge

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

Mission & Content Summary

MISSION

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

CONTENT SUMMARY

  • 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.

Intended Learning Outcomes (ILO)

KNOWLEDGE AND UNDERSTANDING

At the end of the course student will be able to...
  • 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.

APPLYING KNOWLEDGE AND UNDERSTANDING

At the end of the course student will be able to...
  • Construct ProForma financial statements for an M&A deal.

Teaching methods

  • Face-to-face lectures
  • Group assignments

DETAILS

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.

Assessment methods

  Continuous assessment Partial exams General exam
  • Written individual exam (traditional/online)
    x

ATTENDING AND NOT ATTENDING STUDENTS

The students' assessment is entirely based (100% of the final grade) on the final written exam.


Teaching materials


ATTENDING AND NOT ATTENDING STUDENTS

  • P. PIGNATARO, Mergers, Acquisitions, Divestitures, and Other Restructurings, J. Wiley.
Last change 01/06/2019 17:07