Description:
This course discusses all facets of mergers and acquisitions (M&As) and divestitures, including deciding on terms, key factors to consider, pros and cons, types of arrangements, evaluative criteria, valuation methods, financial effects of the merger, holding companies, takeover bids, SEC filing requirements, accounting and reporting requirements for business combinations, and financial analysis of combinations. Also addressed is emergence of corporate development officers (CDOs).

Topics Covered:

• Mergers
• Pros and Cons of a Merger
• Guidelines
• Planning for Mergers and Acquisitions
• Deciding on Acquisition Terms
• Grading Criteria
• Factors in Determining a Price
• Acquisition Strategy and Process
• Financing the Merger
• Advantages of Giving Stock
• Disadvantages of Giving Stock
• Advantages of Giving Assets
• Disadvantages of Giving Assets
• Advantages of Leverage
• Disadvantages of Leverage
• Preferred Stock Financing
• The Use of Capital Budgeting Techniques in Appraising the Acquisition
• Total liabilities and equity
• Effect of Merger on Earnings per Share and Market Price per Share
• Risk of the Acquisition
• Holding Company
• Hostile Takeover Bids
• SEC Filing Requirements
• Tax Considerations
• Defensive Measures by Targeted Company
• The Valuation of a Targeted Company
• Accounting, Reporting and Disclosures for Business Combinations
• Financial Statement Analysis of Business Combination
• Emergence of Corporate Development Officers (CDOs) and In-House M&A Teams
• Making a Corporate Marriage Work
• Unbundling
• Objectives and Types of Divestitures
• Reasons for Divestiture
• Determining What Areas/Units Should Be Sold
• Divestiture or Restructuring Planning
• Planning the Sale
• Employee Considerations
• Means of Divestiture
• Valuation and Appraisal in Divestiture
• An Illustration: Discounted Cash Flow Analysis
• Divestiture with Uncertainty
• Choosing the Form of the Transaction
• Accounting for Divestitures
• Accounting for the Disposal of a Segment of a Business
• Liquidation Process

Category: Business Management

Delivery Method: Online

Level: Overview

Prerequisites: None

Passing Score: 70%

NASBA: Yes QAS Self Study

Author: Delta Publishing

ABOUT THE SUBJECT MATTER EXPERT:
Dr. Jae K. Shim is Professor of Business at California State University, Long Beach,
California. Dr. Shim received his MBA and Ph.D. degrees from the University of California at Berkeley (Haas School of Business.) He has co-authored over 50 professional business books and has been a consultant to commercial and nonprofit organizations for over 30 years.