Finance of Mergers and Acquisitions: Designing an M&A Deal

University of Illinois at Urbana-Champaign via Coursera

Go to Course: https://www.coursera.org/learn/mergers-acquisitions-ma-deal

Introduction

### Course Review: Finance of Mergers and Acquisitions: Designing an M&A Deal **Introduction** The world of mergers and acquisitions (M&A) is as exhilarating as it is daunting, combining strategic insight with financial acumen in a powerful blend. Coursera's course titled “Finance of Mergers and Acquisitions: Designing an M&A Deal” offers a comprehensive exploration of this complex field, equipping learners with the skills necessary to design effective M&A deals. This course not only addresses the theoretical aspects of M&A but also emphasizes practical tools that managers and investment bankers can leverage to create successful transactions. **Course Overview** The course delves into various facets of M&A finance, focusing on how to value and finance deals. Covering major types of M&A transactions—including strategic M&A, private equity leveraged buyouts (LBOs), and corporate restructuring—the curriculum is structured to provide a thorough understanding of the financial considerations that drive successful mergers and acquisitions. ### Syllabus Breakdown **Module 1: Designing an M&A Deal: Accounting, Taxation, and Means of Payment** This module serves as an essential foundation. It covers vital accounting and taxation principles relevant to M&A. Learners will explore how to navigate the trade-offs between cash and stock deals, focusing on crucial factors such as tax implications and valuation issues. This understanding is crucial for assessing the deal structure that best aligns with organizational goals and creates value for stakeholders. **Module 2: Financing M&A Deals** Understanding how leverage affects company value is critical when managing M&A transactions. This module guides learners through the intricacies of capital structure and teaches how to select the optimal financing mix. By utilizing advanced tools like credit ratings and debt structures, participants gain a systematic approach to navigating financial complexities that arise from mergers and acquisitions. **Module 3: Private Equity and Leveraged Buyouts** Private equity has transformed the M&A landscape, making it indispensable for practitioners in this field. This module offers deep insights into the financial intricacies of private equity deals, including highly leveraged valuations and the mechanics of LBO modeling. Practical applications of financial theories are emphasized, enabling learners to understand the sources of value creation and develop exit strategies while calculating internal rates of return (IRR). **Module 4: Corporate Restructuring: Divestiture and Spin-offs** M&A is not just about acquisitions; divestitures and spin-offs play a significant role in value creation as well. In this module, learners will uncover the rationale and methods for effectively downsizing or breaking up companies. By discussing the tax implications and the importance of corporate focus, this segment highlights how strategic divestitures can enhance a company's core operations and shareholder value. **Course Conclusion** The course wraps up by reiterating the key lessons learned, ensuring that participants leave with a robust understanding of the finance of M&A. It prepares learners not only to analyze but also to design M&A deals from the ground up, equipped with the necessary financial tools and concepts. ### Conclusion and Recommendation “Finance of Mergers and Acquisitions: Designing an M&A Deal” stands out as an essential resource for anyone looking to deepen their understanding of M&A finance. Whether you are a finance professional, a student aspiring to enter the corporate sector, or a manager seeking to enhance your strategic decision-making abilities, this course will prove invaluable. With its comprehensive syllabus, practical insights, and focus on real-world applications, this course comes highly recommended. Learners will emerge with a clear understanding of how to navigate the intricate world of mergers and acquisitions, making them a vital asset in any organizational context. Enroll today and take the first step towards mastering the finance of M&A!

Syllabus

Course Orientation and Module 1: Designing an M&A Deal: Accounting, Taxation, and Means of Payment

You will learn the basic accounting and taxation principles of M&A deals, and how accounting and taxation choices interact and potential implications for M&A financing decisions. This module will also discuss the key trade-offs that acquirers and targets face when deciding between cash and stock deals, including taxes, valuation issues and uncertainty about synergies.

Module 2: Financing M&A Deals

M&A deals can cause significant changes in corporate leverage. In this module you will learn how leverage affects company value both in theory and in practice. You will also learn how to choose the optimal financing mix in an M&A deal, using the trade-off model of capital structure and other state-of-the art tools including credit ratings and debt structure.

Module 3: Private Equity and Leveraged Buyouts

Private equity deals have become an essential component of the M&A market and studying private equity deals is an excellent learning tool for an M&A practitioner. You will learn the Finance issues that are essential to private equity deals including highly leveraged valuation, complex financing structures, and the key sources of value creation. You will also learn the complete modeling of a leverage buyout (LBO), including valuation, financing, exit plans and calculation of IRR (internal rates of return).

Module 4: Corporate Restructuring: Divestiture and Spin-offs

Companies create value not only by buying assets but also by selling assets and downsizing. You will learn how and why companies can create value by breaking up. This module will also discuss the specifics of divestitures and spin-offs, including tax implications and the benefits of corporate focus.

Course Conclusion