AFF5361 - Mergers, acquisitions and financial restructuring

6 points, SCA Band 2, 0.125 EFTSL

Caulfield Summer semester A 2007 (On-campus)

This unit provides an introduction to corporate financial restructuring as a general subject on how corporations

rehabilitate ailing firms and
how an analyst evaluate shareholder value creation through mergers or financial restructuring of corporations. The skills in valuation analysis acquired in basic finance course will be enhanced by the development of several restructuring modeling ideas such as the ones for takeovers, spin-offs and equity carve-outs. Students also do a group project on restructuring, takeover and mergers using a listed firm: there is a special database of mergers and takeover firms, which the students will use for this purpose.

The learning goals associated with this unit are to:

introduce a set of theories, the regulatory framework and assessment techniques for the study of mergers and financial restructuring that occurs worldwide
develop modelling skills by using a computer (excel or other higher level languages) for the valuation of acquiring and takeover firms in Australia and elsewhere using the special databases available in Monash University
analyse and make appropriate evidence-based conclusions on how financial restructuring methods create or destroy values: this covers a number of techniques used as financial restructuring tools
develop a set of skills to identify value creation in M&A activities around the world, by doing a real-case M&A case study.

Project report of an applied capital market analysis: 50%
Examination (3 hours): 50%.

Intensive mode over about 12 days including weekends.