Course in Mergers and Acquisitions

In recent years, the group has provided new inputs through its research, teaching and consulting on corporate restructuring, merger activity, competitive strategies and international business. A few optional courses on these are offered and more are planned.

Course objectives:
The objectives of this course are two-fold. First, the course is intended to provide a comprehensive background in the strategic, economic, financial and organizational aspects of mergers, acquisitions, and divestments. Secondly, the course will seek to provide a practical framework for managerial decision-making in the context of acquisition activities, (for example the determination of exchange ratios between the common stocks of the acquired and acquiring companies.) Being a seminar course it will feature inputs from the instructor(s), and readings and case study presentations by the students.

Course Content:
The topics to be covered are: theory and evidence on the economics effects of the different kinds of acquisition activities, with focus on the two main types, namely mergers and tender offers; basic evidence on inter-firm tender offers, divestitures and spin-offs, and proxy fights; antitrust, taxation and some legal issues in mergers and acquisitions; theory and evidence on the economic effects of anti-takeover activities; evidence on the value of corporate control; and theory and evidence on the effects of competition among acquiring companies for target firms.

Other topics to be covered include, the valuation of firm and other corporate assets, determination of exchange ratios between the common stocks of the acquired and acquiring companies, issues in organizational control and post-merger performance etc.; the regulations on merger activity in India and other countries. Strategic issues in diversification strategy based on acquisitions shall also be discussed. Evidence from Indian experience in mergers and post-acquisition performance shall be provided, wherever possible.