Mergers and Acquisitions

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

Structure

The course uses a mix of frontal teaching and participative learning. We will use lectures, interactive discussion on cases, group projects, presentations and simulations.

Grading

20% Class participation

40% Group work (project + presentations)

40% Final exam

Bibliography

All needed material will be distributed.

Optional readings:

• “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.