Authorised by Academic Registrar, April 1996
Objectives On completion of this subject students should be able to recognise the economic benefits and costs of mergers and acquisitions; apply the major value principles of price earnings multiples, discounted cash flow and asset backing; understand the legal requirements of mergers and acquisitions. In respect of insolvencies, students should be able to understand the law and practice of insolvency; understand causes and avoidance of corporate failure; apply predictive models of corporate failure and appreciate the failure pathway through case study approach.
Synopsis Takeovers - the acquisition and sale process; valuation (I) and (II); legal requirements in respect of mergers and acquisitions; evaluation of targets; insolvencies - social and economic costs of failure; law of insolvency; prediction of the company at risk; causes of failure; avoidance of failure; case studies of corporate failure.
Assessment Case studies: 30% + Class test (3 hours): 70%