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Unit of Study

Mergers and Acquisitions
UoS Code FINC6017
Credit points 6
Offered Semester 1
Prerequisites FINC5001
Prohibitions ACCT6011
Assumed Knowledge
Additional Information
Lectures 1x 3hr seminar per week
Assessment mid-semester exam (20%), assignment (30%), final exam (50%)
Description Mergers and acquisitions have become perhaps the most important activity of investment banks today. They provide a fundamental way for businesses to secure growth. To analyse mergers and acquisitions, most tools from modern financial economics are needed. The unit commences with a review of how existing businesses are valued, continues with an analysis of capital structure decisions, considers management incentives and examines issues in corporate control. It then examines the motives for mergers and acquisitions. Some acquisitions are motivated by value improvements created by correcting incentive problems, some acquisitions however are motivated by bad incentives that decrease value.