Valuation and Mergers and Acquisitions
Essex Business School
Undergraduate: Level 6
Thursday 05 October 2023
Friday 15 December 2023
12 June 2023
Requisites for this module
BE311 and BE329 and BE631
This module explores the theories and techniques in corporate valuation and how the theories and techniques are applied to investment decisions. Students will learn to value corporate entities using various techniques, including discounted cash flow and multiple-based valuations.
In addition, the module will introduce mergers and acquisitions focusing on the economic and financial aspects of the topic, including the motivations for mergers and mergers and acquisitions, the form they may take, the success of mergers, and their determinants. Students will learn how to use short-term event studies to analyze the value impact of mergers and acquisitions.
The aims of this module are:
- To introduce students to the technical and practical aspects of corporate valuation and mergers and acquisition deals.
- To explore various corporate valuation skills.
- To explore a conceptual framework that will help in the understanding of mergers and acquisitions.
- To gain an understanding of the critical issues in mergers and acquisitions.
- To identify and value synergies.
- To finance an acquisition.
- To help familiarise students, using selected case studies, with the practical aspects of the corporate valuation and deal making process.
By the end of this module, students will be expected to be able to:
- Use several corporate valuation methods including discounted cash flow (DCF), adjusted present value (APV), price/earning ratio, book value and similar transactions’ multiples.
- Use short-term event study to analyze the value impact of mergers and acquisitions.
- Demonstrate an in-depth knowledge of mergers and acquisitions and be aware of the critical issues in mergers and acquisitions.
- Understand the legal framework underpinning merger activity in Europe.
- Introduction to valuation.
- Cash flows, NPV and IRR.
- Valuation of bonds and stocks.
- DCF valuation models.
- Relative valuation.
- Introduction to mergers and acquisitions.
- Event studies in mergers and acquisitions research.
- General Motives for mergers and acquisitions.
- Merger waves and international mergers and acquisitions.
- Sources and limits of value creation in merger and acquisitions.
This module will be delivered via:
- One 2-hour lecture per week.
- One 1-hour workshop per fortnight.
This module does not appear to have a published bibliography for this year.
Assessment items, weightings and deadlines
|Coursework / exam
||BE342 AUTUMN TERM
||Main exam: In-Person, Open Book, 120 minutes during Summer (Main Period)
||Reassessment Main exam: In-Person, Open Book, 120 minutes during September (Reassessment Period)
Exam format definitions
- Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
- In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
- In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
- In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary,
for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.
Your department will provide further guidance before your exams.
Module supervisor and teaching staff
Miss Yiwei Li, email: firstname.lastname@example.org.
Dr Yiwei Li & Dr Liangrong Chunyu
Dr Hf Guo
University of Durham
Assistant Professor in Finance
Available via Moodle
Of 18 hours, 18 (100%) hours available to students:
0 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s), module, or event type.
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