À propos de ce cours
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The area of mergers and acquisitions (M&As) is special in finance. Incredible amounts of money are employed in such transactions. Deals draw a lot of public attention and dispute. Oftentimes, stories look more like fairy tales rather than financial reality. The key idea in any M&A transaction is to create value through a potentially synergetic activity. To this end, it is important to have a clear motive and implementation plan. Of special importance are the correct valuation, proper financing, and actual deal completion. But this is not the end – value mostly accrues from the post-merger integration. The understanding of the motives of various stakeholders is instrumental in the analysis of the potential creation of value. The learners will gain insight into the core value creating M&A strategies. They will be able to use the obtained knowledge and skills to successfully advance in their career at a financial institution, as well as in the area of financial management at non-financial businesses. Finally, the Course is very helpful in successful completion of the Specialization’s Final Project....
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Intermediate Level

Niveau intermédiaire

Clock

Recommandé : 5 hours/week

Approx. 23 heures pour terminer
Comment Dots

English

Sous-titres : English
Globe

Cours en ligne à 100 %

Commencez dès maintenant et apprenez aux horaires qui vous conviennent.
Calendar

Dates limites flexibles

Réinitialisez les dates limites selon votre disponibilité.
Intermediate Level

Niveau intermédiaire

Clock

Recommandé : 5 hours/week

Approx. 23 heures pour terminer
Comment Dots

English

Sous-titres : English

Programme du cours : ce que vous apprendrez dans ce cours

1

Section
Clock
5 heures pour terminer

Why M&As? Stakeholders, Framework and Process. Legal and Regulatory Environment. Accounting and Tax Issues an Overview

In Week 1 we paint the big picture of the M&A field. We identify the value creation as the key motive behind these deals. In order to analyze the value creation process, we introduce the stakeholders’ approach and study stakeholders’ motives in some detail. Then we discuss the idea of synergy as the core objective of a successful M&A transaction and its pitfalls. We introduce the framework and process of M&As and discuss the overall environment of these transactions – legal and regulatory issues (especially, antitrust motives), accounting treatment of M&As, and some important tax considerations. We will see how the transaction environment and treatment influence the potential of successful implementation of a transaction and the corresponding value creation. ...
Reading
9 vidéos (Total 93 min), 8 lectures, 2 quiz
Video9 vidéos
1.1. Introduction: Why study M&As?5 min
1.2. The stakeholders’ paradigm14 min
1.3. Buzzwords and challenges. Synergy11 min
1.4. Studying M&As – framework and process11 min
1.5. Legal and regulatory environment (1) – antitrust motives9 min
1.6. Legal and regulatory environment (2) – other issues11 min
1.7. M&As – some accounting issues11 min
1.8. M&As – some tax considerations13 min
Reading8 lectures
Konstantin Kontor10 min
AIBEc. The American Institute of Business and Economics10 min
Grading10 min
Handouts – an important comment10 min
1.1. The takeover process10 min
1.2. The stakeholders’ paradigm10 min
1.3. Legal and regulatory environment10 min
1.4. Some accounting and tax Issues – an overview10 min
Quiz2 exercices pour s'entraîner
1 (Practice)30 min
1 - Takeover process, stakeholders, and environment min

2

Section
Clock
4 heures pour terminer

Strategy and M&As. Theories of M&As

In Week 2 of the Course we discuss corporate strategy and its role in value creation. We revisit some well-known schools of strategic thinking and frameworks of strategy formulation and implementation. Our objective is to understand strategic motives behind M&A transactions. Equipped with the overall understanding of strategy, we proceed with the discussion of major theories of M&As – the motives behind the planned transactions that have the value creation potential. In all theories we try to reveal the actual interests of the key stakeholders. Finally, we study the actual deal mechanics and ways to overcome incumbent shareholder resistance (the free-rider problem). ...
Reading
8 vidéos (Total 93 min), 3 lectures, 2 quiz
Video8 vidéos
2.2. Strategic vocabulary – some approaches and frameworks7 min
2.3. Challenges to strategic planning8 min
2.4. Some well-known classic schools of strategy12 min
2.5. Theories of M&As (1)15 min
2.6. Theories of M&As (2)11 min
2.7. Free-rider problem – solutions (1)12 min
2.8. Free-rider problem – solutions (2)12 min
Reading3 lectures
2.1. Strategy and M&As10 min
2.2. Theories of M&As10 min
2.3. Small shareholders and tender offers10 min
Quiz2 exercices pour s'entraîner
2 (Practice)30 min
2 - M&A strategy and value creation potential in the uncertain world min

3

Section
Clock
4 heures pour terminer

Valuation of M&As

Week 3 is devoted to the central topic of the Course – M&A valuation. We start with the analysis of the importance of valuation in the potential value creation. Then we discuss and compare alternative approaches to valuation, paying special attention to free cash flow (FCF) valuation. We analyze major value drivers – profitability, growth, cost of capital etc. and derive general valuation formulas for special cases of no growth, constant and supernormal growth. Then we apply the formulas to analyze value gains/losses in M&A transactions on examples. ...
Reading
9 vidéos (Total 94 min), 3 lectures, 2 quiz
Video9 vidéos
3.2. Alternative approaches to valuation16 min
3.3. Free cash flow (FCF) valuation10 min
3.4. The general formula8 min
3.5. Some methodology, or how to extract value drivers11 min
3.6. Cost of capital10 min
3.7. Value creation in M&As8 min
3.8. Calculating gains (losses)6 min
3.9. Valuation in the “new economy” – some comments8 min
Reading3 lectures
3.1. M&A valuation (1) – value drivers, approaches, and formulas10 min
3.2. M&A valuation (2) – cost of capital10 min
3.3. M&A valuation (3) – value creation example10 min
Quiz2 exercices pour s'entraîner
3 (Practice)30 min
3 - Getting used to value drivers and formulas min

4

Section
Clock
3 heures pour terminer

M&A Financing. LBOs and MBOs

In Week 4 we study M&A financing. Motives, theories, and deal mechanics are fine – but where’s the money? If a transaction is friendly, a stock payment is likely to help. But what if there’s a conflict? Then a lot of cash is needed, and a lot of debt must be issued. One way is issuing junk bonds. We discuss both facts and myths about junk bonds. Then we consider LBO and MBO transactions. First, we analyze how a company may be taken private through heavy borrowing and further gradual debt repayment. We illustrate the mechanics of an LBO/MBO transaction on a detailed example. Finally, comments on a famous LBO case – RJR Nabisco – are provided. ...
Reading
7 vidéos (Total 87 min), 2 lectures, 2 quiz
Video7 vidéos
4.2. Junk bonds (1) – facts12 min
4.3. Junk bonds (2) – legends11 min
4.4. Joint venture as a form of a merger7 min
4.5. LBOs and MBOs (1) – a way of financing11 min
4.6. LBOs and MBOs (2) – an example22 min
4.7. An example of an LBO – the RJR Nabisco case (1988)10 min
Reading2 lectures
4.1. Junk bonds and M&A financing10 min
4.2. LBOs and MBOs10 min
Quiz2 exercices pour s'entraîner
4 (Practice)30 min
4 - Junk bonds and LBOs – how investors profit from them min

Enseignant

Konstantin Kontor

Director and Professor of Finance and Strategy
American Institute of Business and Economics (AIBEc)

À propos de Moscow Institute of Physics and Technology

Московский физико-технический институт (неофициально известный как МФТИ или Физтех) является одним из самых престижных в мире учебных и научно-исследовательских институтов. Он готовит высококвалифицированных специалистов в области теоретической и прикладной физики, прикладной математики, информатики, биотехнологии и смежных дисциплин. Физтех был основан в 1951 году Нобелевской премии лауреатами Петром Капицей, Николаем Семеновым, Львом Ландау и Сергеем Христиановичем. Основой образования в МФТИ является уникальная «система Физтеха»: кропотливое воспитание и отбор самых талантливых абитуриентов, фундаментальное образование высшего класса и раннее вовлечение студентов в реальную научно-исследовательскую работу. Среди выпускников МФТИ есть Нобелевские лауреаты, основатели всемирно известных компаний, известные космонавты, изобретатели, инженеры....

À propos de American Institute of Business and Economics

The American Institute of Business and Economics (AIBEc) offers a wide variety of business courses in finance, accounting, marketing, strategy, HR, business law, economics, general management, business psychology, as well as course projects and the Field study. AIBEc provides for flexibility and customization of programs and schedules....

À propos de la Spécialisation Understanding Modern Finance

This Specialization is designed for a wide audience of those interested in finance either professionally or just of curiosity, including managers of different levels specializing in finance, accounting, business planning, strategy, consulting, and project management, IT specialists engaged in the area of finance, fin-tech, big data, and valuation, etc. Through four courses and the final Project, you will cover the theory and practice of capital markets and financial institutions, corporate finance and project valuation, financial and managerial accounting as applied to finance, as well as the M&A market as the ultimate judge of financial efficiency and value creation. The Specialization will prepare you to understand and use the applications of financial ideas, concepts, models, strategies, and tools to build a successful career in finance and in business, as well as to take advantage of opportunities offered by financial markets....
Understanding Modern Finance

Foire Aux Questions

  • Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.

  • When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.

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