Mergers
Mergers & Acquisitions and Company Valuation
(MSc Finance 2013-2014)
Course page at Moodle
http://ggsb.grenoble-em.com/course/view.php?id=892
Syllabus
https://sites.google.com/site/zhaoshan75/mergers/syllabus.pdf
Outline
https://sites.google.com/site/zhaoshan75/mergers/outline_merger.pdf
Summary of Chapter 3-15 of Berk-DeMarzo book
https://sites.google.com/site/zhaoshan75/mergers/summary3_15.pdf
Session 1
Preclass assingment
Watch the video below to understand what is finance and why finance is fascinating.
http://ggsb.grenoble-em.com/mod/resource/view.php?id=38695
Slides
https://sites.google.com/site/zhaoshan75/mergers/Berk_18class2.ppt
Review of some concepts in corporate finance
https://sites.google.com/site/zhaoshan75/mergers/review_CF.ppt
Additional explanation
https://sites.google.com/site/zhaoshan75/mergers/ses1.pdf
Exercise:
Required: 5, 8, 9,
Recommended: 1, 4, 6, 11
Session 2
Exercise:
Required: 13, 16, 18,
Recommended: 12
Session 3
Slides
https://sites.google.com/site/zhaoshan75/mergers/valuation1.pdf
https://sites.google.com/site/zhaoshan75/mergers/Berk_19class2.ppt
Additional explanation
https://sites.google.com/site/zhaoshan75/mergers/ses2.pdf
As an alternative to historical data, one can estimate the future market risk premium implied by current stock prices.
https://sites.google.com/site/zhaoshan75/mergers/ImpliedEquityPremium.pdf
Deutsche Bank and Disney examples
https://sites.google.com/site/zhaoshan75/mergers/example_valuation.pdf
https://sites.google.com/site/zhaoshan75/mergers/disney.xls
Aardvark exercise and answer
https://sites.google.com/site/zhaoshan75/mergers/Aardvark.docx
Session 4
Valuation using Multiples (please read comments for more explanation.)
https://sites.google.com/site/zhaoshan75/mergers/multiples.pdf
longer version:
https://sites.google.com/site/zhaoshan75/mergers/multiples.ppt
Solution and Exercises on Multiples
https://sites.google.com/site/zhaoshan75/mergers/solution_multiples.pdf
Midterm (30 minites)
Sample Midterm
https://sites.google.com/site/zhaoshan75/mergers/midterm1.pdf
https://sites.google.com/site/zhaoshan75/mergers/midterm2.pdf
Session 5
Case class instruction
https://sites.google.com/site/zhaoshan75/mergers/Case_Class.pdf
Scoring Sheet for Presentations
https://sites.google.com/site/zhaoshan75/mergers/Rubric_Presentation.pdf
Acquisition of APC by Schneider Electric:
http://ggsb.grenoble-em.com/mod/resource/view.php?id=38957
What Value for Facebook?
http://ggsb.grenoble-em.com/mod/resource/view.php?id=38958
Some tips on presentation and making slides
https://sites.google.com/site/zhaoshan75/mergers/tips_presentation_slides.pdf
Getting data from Bloomberg
https://sites.google.com/site/zhaoshan75/mergers/BloombergIntroduction.pdf
Valuation Examples
* Chapter 19 of Berk and DeMarzo (its spreadsheet programs can be downloaded from the website of the book.)
* spreadsheet program "ValueMerge.xls" from
http://fisher.osu.edu/fin/faculty/walkling/spreadsheets%20for%20Bruner/index.html
* Deutsche Bank and Disney example
https://sites.google.com/site/zhaoshan75/mergers/example_valuation.pdf
https://sites.google.com/site/zhaoshan75/mergers/disney.xls
Valuation resources from NYU
http://pages.stern.nyu.edu/~ADAMODAR/New_Home_Page/valuation/val.htm
http://pages.stern.nyu.edu/~ADAMODAR/New_Home_Page/eqdata.htm
http://pages.stern.nyu.edu/~ADAMODAR/New_Home_Page/spreadsh.htm
http://people.stern.nyu.edu/adamodar/pdfiles/eqprojects/valproject1.pdf
http://people.stern.nyu.edu/adamodar/pdfiles/eqprojects/valproject9.pdf
Group Member Evaluation Form
https://sites.google.com/site/zhaoshan75/mergers/GroupMemberEvaluation.doc
Final Exam
The quantitative exercises will be only based on Chaper 18, 19, 9 of Berk-DeMarzo. The conceptual exercises will be based on both those chapters and lecture notes.
Sample Exam
https://sites.google.com/site/zhaoshan75/mergers/sample_exam.pdf
Solution
https://sites.google.com/site/zhaoshan75/mergers/grenoble_solution2013.pdf
Miscellaneous
Smarter way to study
https://sites.google.com/site/zhaoshan75/mergers/smarter_way.pdf
Useful Links For the Course
1. Major Links
2. Additional References
3. More links
4. Fun stuffs related to finance
5. Open On-line Courses
** Highly Recommended
* Recommended
Latest update highlighted in red!
1. Major Links
** http://www.ft.com (free registration using GEM email box. You can also read FT newspaper at the school Library)
** www.economist.com (a must read weekly magazine. It can be found in the school library)
Website of the textbook Berk and DeMarzo
http://www.pearsonhighered.com/berk_demarzo/
** Deal Book at NYT
** Deal Journal at WSJ
http://blogs.wsj.com/moneybeat/
The 10 largest M&A deals of all time
http://www.investmentweek.co.uk/investment-week/news/2144492/the10-largest-deals
Vodafone Air Touch’s Bid for Mannesmann (.xls format)
http://www.kellogg.northwestern.edu/faculty/thompsnt/htm/d42/cases.htm
MarketWatch, a subsidiary of Dow Jones
http://www.reuters.com/finance/stocks
http://www.reuters.com/finance/deals
US company filings
http://www.sec.gov/edgar.shtml
Read and search Wall Street Journal at Factiva for free
http://libraryds.grenoble-em.com/en/Pages/default.aspx
ProQuest databases
http://libraryds.grenoble-em.com/en/databases/Pages/academicjournals.aspx
Corporate tax rates around the world
Federal Reserve Bank of St. Louis (http://research.stlouisfed.org/fred2/). US macroeconomic data.
Finance and Economics on the Web
http://webpage.pace.edu/pviswanath/finance.html
*Free Cases
The Merger of Hewlett-Packard and Compaq (A) Strategy and Valuation
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=909887
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=909888
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=909889
Package War: Fedex Vs. Ups
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=909934
2. Additional References
a. Company valuation
Principas of Corporate Finance, by Richard Brealey, Stewart Myers and Franklin Allen, McGraw Hill.
Corporate Finance, by Stephen Ross, Randolph Westerfield and Jeffrey Jaffe, later edition, McGraw
Hill.
Applied Mergers and Acquisitions 2004 by R. F. Bruner,
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=553561
Discounting Tax Shields and the Unlevered Cost of Capital
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1488437
* The Assumptions and Math Behind Wacc and Apv Calculations
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=837384
3. More links
Mergers & Acquisitions in the US
http://www.crossbordermanagement.com/en/guides/mergers-a-acquisitions-in-the-us
Investment Banks
Consultants
Law firms
Finance theory from Yale
http://www.youtube.com/course?list=ECEDC55106E0BA18FC
Corporate Finance by David Thesmar from HEC Paris
https://itunes.apple.com/fr/itunes-u/corporate-finance-david-thesmar/id489799136
**650 open courses
http://www.openculture.com/freeonlinecourses
Free Courses
4. Fun stuffs related to finance
https://sites.google.com/site/zhaoshan75/funfinance
5. Open On-line Courses
Financial Markets (2011) with Robert Shiller