OVERVIEW

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. 

AIMS AND CONTENT

LEARNING OUTCOMES

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)

AIMS AND LEARNING OUTCOMES

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:

• Examine the conditions for the origins and development of M&A
• Clarify the concepts of corporate valuation

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).

PREREQUISITES

Italian GAAP (OIC) and discounting principles

TEACHING METHODS

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.

Students who have valid certification of physical or learning disabilities  and who wish to discuss possible accommodations or other circumstances regarding lectures, coursework and exams, should speak both with the instructor and with Professor Serena Scotto (scotto@economia.unige.it<mailto:scotto@economia.unige.it>), the Department’s disability liaison.

SYLLABUS/CONTENT

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

RECOMMENDED READING/BIBLIOGRAPHY

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; 

TEACHERS AND EXAM BOARD

Exam Board

FRANCESCO GIOVANNI AVALLONE (President)

COSTANZA DI FABIO

ALBERTO QUAGLI

PAOLA RAMASSA

ELISA RONCAGLIOLO

LESSONS

LESSONS START

1° semester

Class schedule

M&A AND CORPORATE VALUATION

EXAMS

EXAM DESCRIPTION

Written examination on M&A transactions followed by an oral examination on the full program.

ASSESSMENT METHODS

The final exam is based on a written assessment (regarding both theory and cases). The oral exam draws from the discussion of a short report individually prepared by the student on a real case of M&As .

The 6 CFU exam does not include the preparation of the report indicated above. Instead, the content of the syllabus remains unchange.

Exam schedule