Mergers and Acquisitions

Catalog description

This course examines the economic rationale and motivation for the different merger and acquisition and recapitalization activities undertaken by firms and individuals in the U.S. market. Emphasis is on the comparable publicly traded proxy company, comparable "change of control" transaction, and discounted cash flow methods of valuing a firm. The class will also review the different types of debt and equity capital employed to fund mergers and acquisitions and recapitalizations, how senior lenders and equity investors structure their loans and/or investments, and how investors realize the gains through different exit strategies. The legal and tax ramifications of various forms of M&A activity are also discussed. The course gives the student an excellent understanding of the role that senior commercial banks, insurance companies, pension funds, LBO funds, investment banking firms, and venture/growth capital investors play in mergers and acquisitions and will strengthen the students' ability to value a business enterprise. Prereq: MBAC 504 or MBAP 405.