Outline

Overview

Mergers and acquisitions are a fundamental component of the corporate landscape. Students enrolling in this unit will study the economic and strategic drivers of corporate restructuring activity and their use in the design and analysis of restructuring transactions; evaluate the outcomes from restructuring transactions, both the theory-based explanations and the empirical tests of the theories; learn to identify and value synergies in a restructuring transaction using ï¿½several valuation methods; develop a detailed understanding of the design and economic impacts of deal structures used to effect corporate restructuring transactions; and analyse the process of merger arbitrage and its contribution to the outcome of restructuring transactions. This unit will, where possible, integrate learning outcomes in an academic and applied context, and develop an appreciation of the regulatory environment for restructuring transactions and the impact of these regulations on the process and outcomes of restructuring transactions.

Unit details and rules

Academic unit	Finance
Credit points	6
Prerequisites ?	FINC2012
Corequisites ?	None
Prohibitions ?	None
Assumed knowledge ?	Calculation of free cash flows, trading multiples, discounted cash flow valuation methodology, valuation sensitivities, regression analysis.
Available to study abroad and exchange students	Yes

Teaching staff

Coordinator	Maurice Peat, maurice.peat@sydney.edu.au

Type	Description	Weight	Due	Length
Final exam (Open book)	Final exam Written exam	50%	Formal exam period Due date: 30 Nov 2020 at 15:42 Closing date: 12 Dec 2020	2 hours
Outcomes assessed:
Assignment	Individual Essay Essay	20%	Week 05 Due date: 25 Sep 2020 at 17:00 Closing date: 30 Sep 2020	1000 words
Outcomes assessed:
Assignment	M&A Deal Evaluation Report and Presentation	30%	Week 11 Due date: 13 Nov 2020 at 17:00 Closing date: 18 Nov 2020	1500 word Report and 10 min Presentation
Outcomes assessed:
= hurdle task ? = group assignment ? = Type C final exam ?

Assessment summary

Individual Essay: This assignment will give you the opportunity to engage with the academic literature and apply your critical reasoning. Your response to the question should be in the form of a 1000 word essay.
M&A Deal Evaluation: The group assignment gives you the opportunity to apply your critical reasoning and analytical problem-solving skills to a recent M&A transaction while building effective communication and group-work skills. Groups will ideally consist of 3-5 and need to be formed by the end of week 3. Each group will be required to prepare a 1500 word report, a PowerPoint slide deck and deliver as a group 'pitch'. Students will be taking the perspective of a consultant hired to advise on the M&A deal. The quality of your group's report and pitch presentation will receive 20% and 10% marks respectively. You should provide evidenced-reasoning to justify statements and recommendations.
Final exam: The final exam will test overall knowledge and understanding of the materials covered in the unit and the ability to critically apply learnt knowledge and skills to given problems. You will be assessed on your ability to clearly define and contrast concepts covered through the semester; analyse and discuss issues in the M&A environment and specific deals, apply valuation tools and evaluation methodologies to determine the outcomes of M&A scenarios; and compare and critique alternative corporate strategies and deal structures. The final exam will consist of short-answer, and/or problem-solving questions.

Detailed information for each assessment can be found on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name	Mark range	Description
High distinction	85 - 100	Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Distinction	75 - 84	Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Credit	65 - 74	Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Pass	50 - 64	Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Fail	0 - 49	When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

Deduction of 5% of the maximum mark for each calendar day after the due date.
After ten calendar days late, a mark of zero will be awarded.

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

Use of generative artificial intelligence (AI) and automated writing tools

You may only use generative AI and automated writing tools in assessment tasks if you are permitted to by your unit coordinator. If you do use these tools, you must acknowledge this in your work, either in a footnote or an acknowledgement section. The assessment instructions or unit outline will give guidance of the types of tools that are permitted and how the tools should be used.

Your final submitted work must be your own, original work. You must acknowledge any use of generative AI tools that have been used in the assessment, and any material that forms part of your submission must be appropriately referenced. For guidance on how to acknowledge the use of AI, please refer to the AI in Education Canvas site.

The unapproved use of these tools or unacknowledged use will be considered a breach of the Academic Integrity Policy and penalties may apply.

Studiosity is permitted unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission as detailed on the Learning Hub’s Canvas page.

Outside assessment tasks, generative AI tools may be used to support your learning. The AI in Education Canvas site contains a number of productive ways that students are using AI to improve their learning.

Learning support

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Weekly schedule

WK	Topic	Learning activity
Week 01	Introduction to corporate finance and mergers and acquisitions	Lecture (2 hr)
Week 02	Assessing mergers and acquisitions outcomes	Lecture (2 hr)
Week 02	Introduction to corporate finance and mergers and acquisitions	Tutorial (1 hr)
Week 03	Merger waves; Mergers and acquisitions in Australia	Lecture (2 hr)
Week 03	Assessing mergers and acquisitions outcomes	Tutorial (1 hr)
Week 04	Why, when and how do firms engage in mergers and acquisitions?	Lecture (2 hr)
Week 04	Merger waves; Mergers and acquisitions in Australia	Tutorial (1 hr)
Week 05	Synergies and Deal valuation	Lecture (2 hr)
Week 05	Why, when and how do firms engage in mergers and acquisitions?	Tutorial (1 hr)
Week 06	Form of payment part 1	Lecture (2 hr)
Week 06	Synergies and Deal valuation	Tutorial (1 hr)
Week 07	Form of payment part 2	Lecture (2 hr)
Week 07	Form of payment part 1	Tutorial (1 hr)
Week 08	Alternatives to mergers and acquisitions; Corporate restructuring	Lecture (2 hr)
Week 08	Form of payment part 2	Tutorial (1 hr)
Week 09	LBOs and go-private transactions	Lecture (2 hr)
Week 09	Alternatives to mergers and acquisitions; Corporate restructuring	Tutorial (1 hr)
Week 10	Hostile takeovers and Defense tactics	Lecture (2 hr)
Week 10	LBOs and go-private transactions	Tutorial (1 hr)
Week 11	Merger arbitrage	Lecture (2 hr)
Week 11	Hostile takeovers and Defense tactics	Tutorial (1 hr)
Week 12	Shareholder activism and Unit review	Lecture (2 hr)
Week 12	Merger arbitrage	Tutorial (1 hr)

Attendance and class requirements

Lecture recordings: All lectures will be recorded and will be available on Canvas for student use.

Please note the Business School does not own the system and cannot guarantee that the system will operate or that every class will be recorded. Students should ensure they attend and participate in all classes.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

All readings for this unit can be accessed through the Library eReserve, available on Canvas.

Recomended text: Mergers and Acquisitions 5th Ed., Custom print, Pearson Australia (Sydney).

Learning outcomes

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

Outcomes
Graduate qualities

At the completion of this unit, you should be able to:

LO1. Analyse and discuss the strategic role of mergers and acquisitions to corporations in value creation
LO2. Describe how and why corporate mergers, acquisitions and restructuring activities are an important part of the efficient operations of financial markets
LO3. Examine particular forms of mergers and acquisitions to determine critical aspects of a deal, as well as provide a recommendation to a particular group of stakeholders
LO4. Measure and analyse the significance of control premium and synergies, identify and justify likely control premium and synergies in a given corporate mergers and acquisitions deal, and determine optimal deal structures. Assess the risks of mergers and acquisitions implementation
LO5. Explain various classes of risk management tools used in M&A and their advantages and weaknesses
LO6. Conduct research using archives, libraries, web-sourced data and other sources of information to produce timely and high-quality work
LO7. Communicate issues relating to mergers and acquisitions clearly and succinctly.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1	Depth of disciplinary expertise Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.
GQ2	Critical thinking and problem solving Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.
GQ3	Oral and written communication Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.
GQ4	Information and digital literacy Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.
GQ5	Inventiveness Generating novel ideas and solutions.
GQ6	Cultural competence Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.
GQ7	Interdisciplinary effectiveness Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.
GQ8	Integrated professional, ethical, and personal identity An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.
GQ9	Influence Engaging others in a process, idea or vision.

Outcome map

Learning outcomes	Graduate qualities
Learning outcomes

Responding to student feedback

This section outlines changes made to this unit following staff and student reviews.

Changes to facilitate online learning.

Additional information

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.

Current students

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect

Current students

FINC3013: Mergers and Acquisitions

Semester 2, 2020 [Normal day] - Camperdown/Darlington, Sydney

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect