Mergers & Acquisitions: Theory and Practice

This two-day program provides students with the concepts and theories of mergers and acquisitions, as well as the structuring of a deal through hands-on examination of the key components of a transaction.

The first day focuses on theory and the most important issues involving merger and acquisition activity, including the financial structuring of the deal, accounting issues, valuation, due diligence, and legal issues.

The second day includes case studies and discussions that illustrate the practical application of the theory.

No sessions currently available. Contact client services to get the next available date.
CPE CREDITS
14.0
This course is suggested for financial analysts/managers, bankers, strategic planning professionals, financial decision-makers in corporations, corporate finance lawyers, corporate finance accountants, financial management consultants, market regulators, and professionals interested in theoretical and applied M&A analysis and valuation.
No advance preparation required.
Students will be able to:
  • Describe common motivations for acquisitions
  • Explain why many acquisitions are unsuccessful
  • Identify the methods of structuring a business acquisition
  • Evaluate the intrinsic and relative valuation methods for target companies
  • Follow the sequence of events of a typical transaction
  • Examine the structure used in financing M&A transactions
  • Acquire practical skills in the procedures and techniques of M&A
  • Gain different M&A perspectives of buyers and sellers
Participants should have a solid knowledge of financial statement analysis, the basics of corporate finance, such as TVM, cash flows, and discounting, as well as Excel.
Day One
What is a Merger and What is an Acquisition?

    Why Mergers and Acquisitions Exist - Reasons for Engaging in this Activity

      Factors Accounting for Additive Value for an Acquisition

        Why Acquisitions Fail

          Financial Structuring of an Acquisition

          • Stock purchase
          • Asset purchase
          • Currencies of acquisitions - cash, debt, equity of acquirer, or successor entity
          • Accounting for business combinations and earnings per share

          Factors in Valuation of a Perspective Acquisition

          • Methodologies
          • IRR
          • Professional fees
          • Cultural issues
          • Existing baggage

          Due Diligence

          • Financial
          • Product
          • Markets
          • Customers
          • Employees and benefits
          • Locations
          • Existing contractual obligations of various kinds and off-balance sheet liabilities
          • Legal due diligence

          Mindfulness of Legal Hurdles

          • Boards
          • Shareholders
          • Regulatory agencies

          The Process (Friendly Phase)

          • Confidentiality Agreement
          • Preliminary due diligence
          • Letter of Intent
          • Detailed due diligence
          • Definitive Agreement

Day Two: Case Studies that Illustrate Aspects of the Theory
Morning Case Study
  • Discussion of a case illustrative of business strategy, investment and financing decisions

Afternoon Case Study

  • Discussion of a case involving marrying of two entirely different cultures and challenges associated with such a daunting task

Summary & Conclusion

Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

Lunch is included for all students taking day classes.