Mergers and Acquisitions
1. or 2. Semester
Prof. Rasa Karapandza, PhD
According to independent market surveys, EBS alumni hold #1 place on the M&A scene in Germany. The goal of this course is to prepare our students to join EBS alumni in leading and shaping German M&A scene. The module consists of two courses: Finance and Economics of M&As and Legal basis in M&A for non-lawyers. Finance and Economics of M&As course builds on the introduction to M&As and the firm valuation skills mastered within the Corporate Finance core module. It starts by explaining the differences between value of control and value of synergy, and discussing how to estimate the two. It then continues by analyzing other challenges involved in the valuation of a merged business or business to be acquired, in particular examining the valuation of young and start-up firms and privately held firms. Open class discussion on the topic of the choice of historical mergers to be analyzed by the individual groups for their take-home assignment concludes with an opinion on the appropriateness of the individual deals and the issues that deserve special attention. The M&A Process and the M&A Auctions and Negotiations are then studied. The course further examines the economics of merger regulation and antitrust, which involves the study of the effect of M&A activity on market structure, anticompetitive effects of mergers by merger type (horizontal, vertical, and conglomerate), and antitrust government intervention. The course concludes by a series of student presentations in which the knowledge from the whole course is applied to analyzing a historical merger or acquisition.
Legal basis in M&A for non-lawyers teaches students how to handle M&A based legal problems if confronted in practice from the legal perspective (for non-lawyers). They will gain knowledge in the three most important juridical fields of topics related to M&A:
- Private M&A: includes understanding of the standard M&A process and it’s points of contact with civil law
- Public M&A: public takeovers according to the German takeover laws (Wertpapiererwerbs- und Übernahmegesetz) -Distressed M&A: M&A process during insolvency proceedings
At all stages Graduates will benefit from a close practical relevance, especially trough lectures held by experienced M&A practitioners