3. Semester (IBF)

COURSE SUMMARY: 

ADVANCED M&A MANAGEMENT

In rapidly evolving markets and ecosystems with patterns of digital disruption, business model innovation, and global value chains, robust strategies are paramount to increasing shareholder value and propelling growth. Business strategies have to be sensitive to their specific ecosystem and, therefore, should be tailor-made. 

Mergers & Acquisitions (M&As) are, among other strategies, a particular approach to leverage growth and value by redesigning corporate portfolios or by creating competitive advantage at strategic business unit level. The dark side of these strategies is that they bear significant risks and tend to underdeliver on promised synergies. Thereby, shareholder value on the buy side is on risk due to challenges mainly encountered during the Integration Management. Despite these shortcomings, the global M&A market is in the midst of its seventh "merger wave" with a transaction volume between $ 3.5-4 trn p.a.. 

And, transactions are one of the premier strategic management tools. The course focuses on the strategic and technical - including valuation and financing - challenges of transactions in an international context and offers a rich toolbox for prospective analysts, managers, and consultants.   

COURSE METHODOLOGY

We will use lectures, flip-classroom concepts and case studies to initiate intense in class-discussions. Besides, we will provide an overview of pertinent transaction issues to create a productive learning environment. The course will be structured around the following books:

• Damodaran, A. (2006). Damodaran on Valuation - Security Analysis for Investment & Corporate Finance, 2nd. ed..
• Feix, T. (2020). End-to-End M&A Process Design - Resilient Business Model Innovation. Wiesbaden: Springer Science.
• Feix, T. (2021). Valuing Digital Business Designs & Platforms - An integrated strategic and financial valuation framework. Springer Science Global Book Series: The Future of Business and Finance.
• DePhampelis, D.M. (2015). Mergers, Acquisitions, and Other Restructuring. Los Angeles: Academic Press. (Selected chapters).
• Koller, T.; Goedhardt, M.; Wessels, D. (2020). Valuation - Measuring and Managing the Value of Companies. 7th ed.
• Sirower, M.L. (1997). The Synergy Trap – How companies lose the acquisition game. New York: Free Press. 
• Whitaker, S. (2016). Cross Border M&A. New Jersey: Wiley&Sons.

Besides, distinct recommended, optional and "geek out" literature and research will be defined for each lecture.

The course will be supplemented by the second IBF intensive lecture series on ADVANCED M&A - VALUATION & CASE STUDIES,  where we will run a deep dive on a rich set of case studies and valuation approaches. The course emphasizes theory and analytics, but is also tough from an applied perspective. 

The course will discuss all aspects of international mergers, acquisitions, joint ventures and other forms of cooperation in the global financial markets. We will use the tailored End-to-End M&A Process Design with its 5 pillars:

• Embedded M&A Strategy
• M&A Transaction Management
• Integration Management
• Synergy Management
• M&A Project Management and Governance

Our focal point will be the pertinent M&A questions for the 2020s. A distinct emphasis will be on how to shape business model innovations and digital disruptions by M&A.

COURSE LOGISTICS & TIMING

We will have on-campus lectures every Monday from 11:30 to 13.00. Lectures will start in line with the regular winter term on October 09, 2023. Our class room will be W1.05.

The lectures will be accompanied by selected best practice presentations of blue chip M&A houses, strategy consultants and corporate M&A departments.

You should invariably read the assigned chapters, articles, and supplementary materials before you come to class and go over the assigned exercises and cases. Students are expected to carefully review the assigned reading materials before each session, diligently work on the assigned problems, questions, and cases, as well as to participate actively in class discussions. You should be prepared to spend some time to digest the material, the assignments and the case studies. After the end of each session, you should review handouts, your notes, and highlights in your readings.   

Let's join the journey through the global M&A jungle...