The course aims at providing the skill to achieve specific results through M&A operations and the working knowledge of the techniques involved. Additionally it pertains to the accounting aspects of complex merger and acquisition transactions as a result of business combinations. The groundword for how to value a firm (fundamentals of corporate valuation) is covered.
The course aims at giving a framework of the main accounting concepts and logics underlying M&As and corporate valuation. Specifically, the course aims to provide technical knowledge and the use accounting information for: - valuing a firm (corporate valuation) - manage M&As through alternative perspectives (strategic, accounting and taxation)
The course aims at providing the students with a solid basic knowledge of the principles and logics underpinning both the M&A and the corporate valuation. In particular, the course intends to:
The teaching methods employed will also allow for the development of multiple interdisciplinary skills, including an advanced level of functional literacy skills (through the use of teaching methods geared towards problem-based learning) and an advanced level of project creation skills (through the development by groups of students of possible operational proposals on proposed problems).
Italian GAAP (OIC) and discounting principles
Traditional formats (lectures) and interactive methods based on discussion and sharing of best practices in M&A and corporate valuation, together with the teacher and practitioners.
Group work geared towards solving proposed cases, discussed in the classroom in the presence of both professor and professionals in the field of corporate valuation and M&As.
PART I: corporate valuation
- intrinsic valuation
- core valuation techniques
- fundamentals of Discounted cash flow (DCF)
- estimation of cash flows and discount rate
- impact of taxes
- relative valuation
- special situations: emerging markets, high-growth companies, cyclical companies etc.
- best practices and case studies
PART II: mergers and acquisitions
- recent M&A trends
- corporate restructuring: types of M&A
- LBO
- M&A strategies
- accounting methods in M&A
- tax issues in M&A
Lessons and basic materials are in Italian because of the topic specifically concerns Italian code and Italian tax legislation. However, M&A operations and fundamentals of corporate valuation can be analyse in detail in the following selected publications:
- R.L. Brown, The concise guide to Mergers, Acquisitions and divestitures, Palgrave/MacMillan, 2007;
- P.A.Gaughan, Mergers, Acquisitions and Corporate Restructurings, 7th ed., Wiley, 2018;
- A. Damodaran, The dark side of valuation, Pearson Edu., 2010;
Ricevimento: Professore ordinario Curriculum vitae Dipartimento di Economia - I livello - studio 1034 Telefono: (+39) 010209 5075 E-mail: francesco.avallone@economia.unige.it Orario ricevimento: see updated info on Aulaweb
FRANCESCO GIOVANNI AVALLONE (President)
COSTANZA DI FABIO
ALBERTO QUAGLI
PAOLA RAMASSA
ELISA RONCAGLIOLO
1° semester
M&A AND CORPORATE VALUATION
The final exam is based on a written assessment (regarding both theory and cases), and an oral part starting from a brief analysis prepared by the student on a real examples of M&A and corporate valuation.
