Mergers and Value Enhancing Strategies

This subject has the following teaching availabilities in 2012:

Estimated total time commitment of 120 hours per semester

This subject is only available to those students who would satisfy the entry criteria for the Master of Applied Finance or the Postgraduate Certificate in Applied Finance following completion of FNCE90019 Principles of Finance.

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For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

This subject covers mergers and acquisitions and other value enhancing policies. Topics to be covered include: valuation techniques, mergers and acquisitions (introduction, motives, corporate control, strategic issues, offensive and defensive strategies and ploys); demergers (equity carve outs and spin-offs); other value enhancing strategies including redesigning dividend policy and capital structure to create value, corporate restructuring, EVA, and case studies.

On successful completion of this subject students should be able to:

• Identify and describe the various corporate valuation techniques;
• Explain how changes in investment, dividend policy and financing mix of firms can help create value;
• Discuss mergers and acquisitions as a value enhancing tool;
• Analyse the strategic issues involved in mergers and acquisition;
• Evaluate the merits of alternative funding mechanisms;
• Evaluate and solve case-based problems in corporate finance;
• Critically evaluate certain value enhancing problems.

• 50% 2-hour final exam;
• 20% 1-hour midterm test; and
• 30% assignments totalling not more than 3000 words

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

• Oral communication
• Written communication
• Collaborative learning
• Problem solving
• Team work
• Statistical reasoning
• Application of theory to practice
• Interpretation and analysis
• Critical thinking
• Synthesis of data and other information
• Evaluation of data and other information
• Using computer software
• Accessing data and other information from a range of sources