Mergers and Acquisitions

Course Code:

AFN 318

Course Type:

Area Elective

P:

3

Application:

0

Credits:

3

ECTS:

6

Prerequisite Courses:

Corporate Finance

Course Language:

İngilizce

Course Objectives:

To provide a well-rounded understanding of the major strategic, economic, financial, and governance issues of mergers and acquisitons, with an emphasis on the valuation and performance assessment of the M&A deals.

Course Content:

Drivers of mergers; Ethics in M&A; Cross-border M&A; Performance of M&A; Valuation approaches and synergies; Valuation of highly levered deals; Deal structuring; Post-merger management issues; Governance in M&A; Hostile takeovers; Takeover defenses

Course Methodology:

1: Lecture, 2: Question-Answer, 3: Discussion, 4: Simulation, 5: Case Study

Course Evaluation Methods:

A: Testing B: Presentation, C: Homework, D: Project, E: Laboratory

Vertical Tabs

Course Learning Outcomes

Learning Outcomes	Program Learning Outcomes	Teaching Methods	Assessment Methods
1. To understand the motivation behind mergers and acquisitions and to identify the wrong reasons for M&A	1,4,5,8	1,2,3,5	A,C
2. To know the historical performance of mergers and acquisitions and understand the reasons driving this performance	1,3,4,5,8	1,2,3,5	A,C
3. To be able to discuss the basic steps that the merging firms go through in a typical M&A process, starting from deal initiation until deal completion	1,2,3,4,5,6,8,9,10	1,2,3,5	A,C
4. To be able to apply the relevant valuation techniques to assess the values of the assets of the merging firms	1,2,5,8	1,2,3,5	A,C
5. To be able to describe the key negotiation items between the merging firms in a merger process and assess their economic implications for both parties	1,2,3,4,5,6,8,9,10	1,2,3,5	A,C
6. To be able to identify the managerial and governance problems that may arise post-merger and describe the methods to deal with them	1,3,4,8,9,10	1,2,3,5	A,C

Course Flow

Week	Topics	Study Materials
1	Introduction and Review of Mergers and Acquisitions	Textbook Ch. 1
2	Drivers of Mergers; Ethics in Mergers and Acquisitions	Textbook Ch. 2, Online resources
3	Performance of Mergers and Acquisitions	Textbook Ch. 2
4	Cross-Border M&As	Textbook Ch. 18
5	Strategy and Acquisition Search	Textbook Ch. 4
6	Due Diligence	Textbook Ch. 5
7	Midterm
8	Valuation Approaches	Textbook Ch. 7
9	Valuing Synergies	Textbook Ch. 8
10	Valuing Highly Levered Deals	Textbook Ch. 14
11	Valuing Liquidity and Control	Textbook Ch. 8
12	Deal Structuring	Textbook Ch. 11
13	Post-Merger Management Issues and Corporate Governance	Textbook Ch. 6
14	Hostile Takeovers and Takeover Defenses	Textbook Ch. 3

Recommended Sources

Textbook	DePamphilis (2017). Mergers, Acquisitions, , and Other Restructuring Activities, Academic Press, 9^th Edition.
Additional Resources	Damodaran (2012). Investment Valuation: Tools and Techniques for Determining the Value of any Asset, Wiley, 3^rd Edition.

Material Sharing

Documents	Textbook, class notes, class Moodle page
Assignments	Homeworks, case studies
Exams	Midterm and Final

Assessment

IN-TERM STUDIES	NUMBER	PERCENTAGE
Mid-terms	1	40
Quizzes
Assignment	4	60
Total		100
CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE		30
CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE		70
Total		100

COURSE CATEGORY

Expertise/Field Courses

Course’s Contribution to Program

COURSE'S CONTRIBUTION TO PROGRAM
	Program Learning Outcomes	Contribution
	Program Learning Outcomes	1	2	3	4	5
	1. To understand the core principles of finance and to be able to apply them both nationally and internationally.					X
	2. To formulate solutions to finance problems by effectively using contemporary information technologies and up-to-date financial instruments.			X
	3. To judge the best possible outcome to problems that require ethical and social responsibility-based thinking by identifying stakeholders and weighing alternative solutions.		X
	4. To develop the necessary background to be able to work in multicultural and multilingual environments.		X
	5. To analyze the developments in financial markets by interpreting and distinguishing among the factors affecting them.		X
	6. To recognize management tools and models specific to multinational companies and to be able to apply them where necessary.		X
	7. To understand the structure of the global economic system and to be able to analyze how new developments will affect this structure.	X
	8. To be able to use critical thinking ability in decision making process.					X
	9. To develop and demonstrate the leadership, teamwork and communication skills that may be transferred to the lifelong learning process.			X
	10. To interpret environmental and sustainability issues by implementing quality management processes.				X

ECTS

Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Course Duration (Including the exam week: 16x Total course hours)	15	3	45
Hours for off-the-classroom study (Pre-study, practice)	15	3	45
Mid-terms	1	20	20
Homework	5	6	30
Final examination	1	20	20
Total Work Load			160
Total Work Load / 25 (h)			6,40
ECTS Credit of the Course			6

None

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