AU kursuskatalog arkiv

4089: Mergers & Acquisitions ( forår 2009 - 10 ECTS )

Rammer for udbud

• Uddannelsessprog: engelsk
• Niveau: Elective Master's level course.
• Semester/kvarter: SEMESTER FOR WHICH THE COURSE DESCRIPTION APPLIES: Spring 2009.  
• Timer per uge: NUMBER OF HOURS PER WEEK: 4 hours or less. The total work load is equivalent to 10 ECTS.  
• Deltagerbegrænsning: RESTRICTIONS ON ADMISSION: The course is restricted to 30 participants with at least a BSc in Economics and Management including an introduction to Strategy and Finance. In the case of course over-subscription, participants will be ordered according to the extent to which they have taken required courses (see below). Participants must a) register on the AULA course homepage, b) be present in class at least 80% of the time, and c) present (and oppose) one paper or chapter(s) from the course literature.
• Undervisningssted: Århus
• Hovedområde: Det Samfundsvidenskabelige Fakultet
• Udbud ID: 15141

Formål

LEARNING OBJECTIVES: 

 After following this course, participants should be able to:

o Describe the course literature, i.e.,

• Describe the factors which cause merger decisions and the factors which determine their value creation
• Describe the steps needed to carry out an acquisition strategy in practice

o Apply the course literature, i.e.,

• Relate the role of M&A in managerial decision-making to the evolution of the corporate environment (firm-level, industry-level and economy-level)
• Formulate the execution of an acquisition strategy to meet its goals

o Critique the course literature, i.e.,

• Evaluate the theoretical perspectives used to study the cause and consequence of mergers and merger waves
• Evaluate the tools and techniques used in deal structuring, negotiation and organizational integration
• Evaluate the relevance of M&A and related decision-making as managerial, organizational and firm strategy in a given context
• And potentially extrapolate between existing theoretical and practical issues in a unique and valuable manner

Indhold

COURSE DESCRIPTION:

The past 25 years have seen a major shift in the use of mergers and acquisitions (M&A) as a tool to adapt firms to changes in the external environment. However, many M&A strategies fail to deliver shareholder value on account of misaligned incentives, or a poor conceptualization or execution of these strategies. This course addresses the challenges to realizing value from M&A. Firstly; it builds a conceptual framework founded in corporate strategy and finance theory to analyze the role of M&A as firm, managerial and organizational strategy to meet the changes in the external environment. Secondly, it breaks down the steps needed to execute an M&A strategy and offers how to address them to unlock potential value. As such, the understanding provided by this course is relevant for all parties affected by M&A, and especially for managers, directors, analysts, and investors.

COURSE SUBJECT AREAS:

First half:

1. Historical, conceptual and performance overview of M&A

2. Corporate strategy and organizing for acquisitions

Second half:

3. Deal structuring and negotiation

4. Post-acquisition integration

Faglige forudsætninger

REQUIRED COURSES:

0047: BSc/Strategy (or an equivalent) (mandatory)

4076: BSc/Financial markets and corporate strategy (or an equivalent) (mandatory)

4205: Theory of the firm (not mandatory, but helpful).

Underviser

LECTURER:

Benjamin W. Blunck.

Undervisnings- og arbejdsform

TEACHING METHOD:

The course will emulate the atmosphere of a research seminar series. Specifically, the participants will themselves in turn present, oppose and discuss the contents and broader perspectives offered by the literature. Thus, the participants themselves determine to a large degree how the course literature is addressed. In all, a significant workload is to be expected.

Course meetings will commence in early February, running concurrently until May. The first half of the course will rely solely on participant presentations, while the second half will infuse discussions with presentations by guest lecturers from the business world and academia.

Litteratur

Litteraturliste:

1. Sudarsanam, S.: Creating Value from Mergers and Acquisitions, Prentice Hall, 2003 (except chapters 14, 15 and 18) (509 pages)

2. Journal articles and research notes (251 pages):

Anand, J. "Redeployment of Corporate Resources: A Study of Acquisition Strategies in the US Defense Industries, 1978-96", Managerial and Decision Economics, September-November, 2004, 25 (6/7), 383-400. (18 p)

Auster, Ellen R. and Mark L. Sirower:" The dynamics of Merger and Acquistion waves". The Journal of Applied Behavioral Science, June 2002 pp. 216-244 (28 p)

Capron, Laurence:" The long-term performance of horizontal acquisitions" Strategic Management Journal, 20 :987-1018 (1999). (21 p)

Capron, L., Dussauge, P., Mitchell, W., Resource Deployment Following Horizontal Acquisitions in Europe and North America, Strategic Management Journal, Vol. 19, s. 631-661, 1998 (31 p)

Croft, Elizabeth and Han Donker: "Killer Takeover Bidding Strategies" The Journal of Corporate Accounting & Finance, January/February 2008, pp. 3-9 (7 p)

Dyer J. H., Kale, P., Singh, H., When to Ally & When to Acquire, Harvard Business Review, p. 109-115, 2004 (6 p)

Fortune, A., Acquisition as a Mechanism of Market Evolution: An Evolutionary Perspective on How Acquisitions Create Value, Advances in Mergers and Acquisitions, Vol. 4, p. 151-162, 2005 (12 p)

Harford, Jarrad: "What drives merger waves?".Journal of Financial Economics (2004) pp. 1-32 (33 p)

Harper, N. W. C., Schneider, A., Private equity's new challenge, McKinsey Quarterly Online, 2004 (4 p)

Rappaport, Alfred and Mark L.Sirower: "Stock or cash?" Harvard Business Review, November-December 1999 .pp.147-158 (11 p)

Shleifer, Andrei and Robert W.Vishny:" Stock market driven acquisitions." Journal of Financial Economics 70 (2003) pp. 295-311 (17 p)

Uhlenbruck, Klaus, Michael A.Hitt and Matthew Semadeni: "Market value effects of acquisitions involving internet firms: A Resource-based analysis", Strategic Management Journal, 27, pp 899-913 (2006) (15 p)

Vaara, E. Post-acquisition integration as sensemaking: Glimpses of ambiguity, confusion, hypocrisy, and politicization. Journal of Management Studies, 2003, 40(4), 859-894. (36 p)

Villalonga, Belén and Anita M. McGahan: "The choice among acquisitions Alliances and divestitures" Strategic Management Journal,26, pp 1183-1208 (2005). (26 p)

Weston, J.Fred: "Merger and Acquisitions as Adjustment Processes". Journal of Industry, Competition and Trade 1:4,395-410 (2001) (16 p)

3. Lecture notes

4. Case material and newspaper articles etc. - not compulsory

Total: Approx. 850 pages

Bedømmelse

• Skriftlig, bedømt efter 7-skala med intern censur
5 xxxxx

FORM OF ASSESSMENT:

A 4 hours written examination. The oral presentation and the written presentation of this as well as the contributions to the discussions in class have to be passed before the exam.

EXAMINATION AIDS ALLOWED: None