Objectives and contents
Mergers & Acquisitions are fundamental tools to grow their business. However, realizing the expected value through M&A has proved to be far from obvious. On average 2 acquisitions out of 3 destroy, rather than create, value for the acquiring organization and/or for its shareholders.
In this course, we explore what are the factors that may determine success and failure in M&A. In doing so, we will join our forces to address the following questions:
- What alternative mechanisms can be chosen for corporate growth?
- Under what conditions shall we prefer acquisitions over other mechanisms of corporate development?
- How should we assess the value creation potential and the risks in acquisitions?
- What are the critical factors that could translate the value creation potential into actual value?
- What different approaches that can be used in the post-acquisition phase? How can we select among them?
- What are the implications beyond shareholder value creation/disruption?
We will cover together the topics of the course and we will apply frameworks and notions to specific M&A cases.
By the end of the course you will be able to:
- select among different alternative mechanisms of growth
- assess acquisition opportunities using appropriate tools
- evaluate value creation potential and develop plans to realize this potential
- identify the most appropriate post-acquisition strategies to implement
The course uses a mix of frontal teaching and participative learning. We will use lectures, interactive discussion on cases, group projects, presentations and simulations.
20% Class participation
40% Group work (project + presentations)
40% Final exam
All needed material will be distributed.
- “Managing Acquisitions: Creating Value Through Corporate Renewal”, P. Haspeslagh and D. Jemison, 1991, Free Press
- “Mergers: leadership, performance and corporate health”, D. Fubini, C. Price, M. Zollo, 2006, Palgrave McMillan.
- “Build, Borrow, or Buy: Solving the Growth Dilemma”, L. Capron and W. Mitchell, 2012, HBR Press
- “Corporate Strategy: Tools for analyses and decision-making”, P. Puranam and B. Vanneste, 2016, Cambridge university press.