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- MSIN3001 - Project Management
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- MSIN3004 - Mergers and Valuations
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- MSINM004- Mergers and Valuations
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MSIN3004 - Mergers and Valuations
This module provides students with an understanding of prevailing company valuation methodologies and approaches in general, and specifically for acquisitions. As such it establishes the core knowledge and understanding required to make sense of the complexities of the financial and non-financial aspects associated with the valuation of businesses the context of mergers, acquisitions and take-overs.
The Valuations focus of the module includes the concepts and associated applications of the Efficient Markets Hypothesis, the Capital Asset Pricing Model, the Competitive Advantage Period, Free Cash Flow, and the measurement of the success or otherwise of acquisition(s). Associated aspects considered include Initial Public Offering Pricing, Value Creation Strategies, and the Managing for Value concept. The Mergers focus examines the forces and drivers influencing valuation of companies for acquisition purposes, acquisition success or failure, M&A pricing as distinct from valuation. A common thread linking each focus is the issue of whether mergers create or destroy value.
Prior accounting/finance studies are not presumed. Successful completion of this module will result in having gained insights into and approaches to the valuation of businesses and processes for mergers, acquisitions and takeovers.
It is offered in Term 2 as an option/elective, as appropriate, on eligible Programmes in UCL.
The module organiser is Peter Clark from Department of Management
Science and Innovation, UCL.
Lectures & Seminars
Lectures: 10 lectures x 2 hours Fridays 14.00 –
Seminars: There are no seminars on this module. Lectures commence on 14 January 2011.
Module Assessment Summary
75% of the marks are awarded on the basis of examination result. The examination is held in the Summer Term and is unseen, and of 2 hours duration. 25% of the marks are awarded for coursework. There is one piece of coursework
A successful student will have gained an appropriate knowledge and understanding of:
- A wide range of current valuation and merger analysis methods and approaches, including strengths, limitations, and their applications.
- The most effective valuation and merger analysis approaches available, and how to adjust those methods based on (1) the target company and (2) the target business of an acquisition or diversification plan.
- How to creatively and critically evaluate emerging issues in this area, including but not limited to creation (and destruction) of company value, initial public offering (IPO) pricing, and leverage buy out (LBO) based strategies of specialist acquisition organizations.
Clark, P. (1991). Beyond the Deal: Optimizing Merger and Acquisition Value. New York, Harper Business. NOTE: THIS BOOK IS OUT OF PRINT. PHOTOCOPY VERSIONS AVAILABLE FROM MS&I ADMINISTRATION (1ST FLOOR EFB BLDG.) BEGINNING FIRST WEEK OF TERM. THERE IS AN EXTRA COST FOR THIS—STUDENTS MUST HAVE PURCHASED HIS OR HER OWN COPY FROM MS&I ADMINISTRATION IN ORDER TO ATTEND SESSION 2 AND SUBSEQUENT SESSIONS.
Koller, T. et al. (2010). Valuation: Measuring and Managing the Value of Companies Fifth Edition. New York, Wiley.
Readings will be assigned as appropriate.