Mergers, Acquisitions and Other Combinations

Catalog description

Mergers, Acquisitions and Other Combinations is a course that has both an academic and practical goal in mind. This course will focus on the strategic nature of different horizontal and vertical combinations that for-profit corporations engage in. While merger and acquisition (M&A) activity is the primary combination that is addressed in MGMT 438 , several other strategies are also important, namely (i) equity joint ventures, (ii) strategic alliances and (iii) cartelization. M&A is a key part of a firm's strategic repertoire as it is one way to reach corporate goals when organic growth is either too cumbersome or strategically sub-optimal. However, M&A is also costly since acquirers must take into account financial trade-offs such as opportunity costs or stock dilution. At a fundamental level, MGMT 438 will help students understand what types of firms participate in the market for acquisitions, what motivates participants in these transactions, what outcomes M&A produces, and what managers might learn to improve future M&A. While corporate strategy is the focus, we will also cover legal, accounting and financial topics inherent in M&A. Equity joint ventures (JVs), strategic alliances and cartels will also be covered since these combinations have similarities and differences with acquisitions. Since M&A, JVs, strategic alliances, and cartels often include government approval or sanctions, the regulatory environment will be another key topic covered in MGMT 438 .