292 Mergers and Acquisitions

Mergers and acquisitions are an important part of economic activity and a key element of corporate finance and strategy.  This course will focus on issues related to the market for corporate acquisitions and on restructuring activity.

Topics may include strategic considerations in acquisitions, such as sources of value creation; friendly and hostile takeovers, encompassing discussions of anti-takeover provisions and their implications; bidding strategies, including the use of two-tier offers, and of cash versus equity offers; the use of leverage in buyouts; regulatory risk and hurdles firms face in closing deals, such as the role of antitrust regulation and its effect on the structure of acquisition offers.  Various valuation approaches useful for highly leveraged transactions and buyouts of private firms will be discussed.

Prerequisite: 202A, 205