MERGERS AND ACQUISITIONS

---

SUMMARY

This module enables participants to identify the characteristics of valuation necessary to complete a merger or acquisition. The benefits and defenses of mergers and acquisition are reviewed. The role of the bank as financier and intermediary is explained.

---

OBJECTIVES

Upon completion of this module, participants will be able to:

1. Define merger, consolidation, acquisition and leveraged buyout.

2. List the benefits of mergers and acquisitions.

3. Calculate market value of a company using the stock market price.

4. Calculate the value of a company using expected earnings.

5. Calculate the value of a company using expected cash flows.

6. Calculate the weighted average cost of capital of a firm.

7. Identify the parameters of the risk–adjusted discount rate.

8. Discuss the effect of debt on the net present value of an acquisition.

9. Identify the characteristics of liquidation value.

10. List possible takeover defenses to an unwanted merger or acquisition.

11. Describe the accounting considerations relevant to a merger or acquisition.

12. Identify the role of the bank in merger and acquisition deals.

Back to modules list

Back to home page