Professional Documents
Culture Documents
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Test Details:
Duration: 60 minutes No. of questions: 50 Maximum marks: 50, Passing marks: 25 (50%); There is no negative marking in this module.
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Table of Content
Introduction to M & A
1.1 1.2 1.3 1.4 1.5 1.6 Understanding Key terms Motivation behind M&A Fundamental of M&A Types of M&A Deals Stages in M&A Challenges of M&A deals
Sellers perspective
1.7 Selling Process and Decision Path 1.8 Preparing for sale 1.9 Preparation mistakes 1.10 Understanding sellers objective 1.11 Post closing plans
Buyers perspective
1.12 Building the team 1.13 Designing acquisition plan 1.14 Approaching for sale 1.15 Dealing with the seller
Corporate Restructuring
1.16 Meaning and Scope of restructuring 1.17 Modes of corporate restructuring 1.18 Planning, formulation and execution of corporate restructuring strategies
Management Process
1.19 Risk Management 1.20 Assumption Management 1.21 Dependency Management 1.22 Quality Management 1.23 Cost Management 1.24 Stakeholder Management 1.25 Communications Management 1.26 Issue Management
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Due diligence
1.44 Process and organization for due diligence 1.45 Types of Due diligence
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Course Outline
Introduction to M & A
Explains the motivation behind mergers and acquisition Explains the cyclic nature of mergers and acquisitions Discusses the fundamentals of M&A deals in terms of volumes and value Explains the motivation behind M&A Briefly describe the stages involved in M&A deals Discusses the different categories of M&A deals such as horizontal, vertical and conglomerate mergers Explains the challenges faced in M&A deals Explains the rationale and objectives of M&A deal from the shareholders and managerial perspective
Sellers perspective
Explains the common reasons for selling a company Explains the process involved in selling and decision Path Illustrates the necessary steps involved in sale such as selecting sellers team, preparing the plan of action, understanding market dynamics and valuation, generating a target list, conducting legal audits, identifying marketing strategies to attract prospective buyer and managing the process Illustrate common preparation mistakes Explains the importance of deal terms and terms that fits the sellers objective Explains plans and strategies post closing
Buyers perspective
Explains the steps in assembling the team such as lawyers, external auditors, valuation experts etc for external activities and finance, operations, sales and marketing team for internal activities Illustrates the process involved in designing the acquisition plan such as identifying the objective, outlining the plan etc www.vskills.in
Corporate Restructuring
Illustrates about the meaning and scope of restructuring Explains the modes of corporate restructuring Explains the steps involved in planning, formulation and execution of corporate restructuring strategies
Management Process
Explains the types of risk, need of identifying risks, relative significance and process involved in mitigating risk Explains the process involved in risk management such as understanding the determinants of risk behavior Explains the purpose of assumption management and stage involved such as definition, verification and closure stage Explains the purpose of dependency management and stage involved such as definition, delivery, verification and closure stage Explains the quality management process such as conducting quality reviews and deliverables review Explains the process of cost management involving tracking and reviewing actual cost, cost variation, analyzing overall performance and reconciliation of the difference Describes the process involved in managing the resources taking into account required skills, supply, availability and cost Describes the steps involves in stakeholder management such as identifying all stakeholders, constraints imposed and understanding priorities of the stakeholder Explains the steps involved in communications management such as communication planning, information distribution and marinating performance reports Describes the issue management process and stages involved
Legal Regulations
Companies Act, 1956 Competition Act, 2002 Foreign Exchange Management Act, 1999 SEBI Takeover Code, 1994 Indian Income Tax Act, 1961 SEBI (Buy-back of Securities) Regulations, 1998 SEBI (Substantial Acquisition of Shares and Regulations, 1997
Takeovers)
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Due diligence
Explains the key factor and process involved in conducting informative due diligence Explains different types of due diligence information such as internal and external information Explains the importance and process to conduct financial due diligence with a view to obtain the previous profits of the company to canvas the financial futures Describes the process of legal due diligence which involves scrutinizing corporate , financial, management and employment matters Illustrates the use of business intelligence techniques in the process of commercial due diligence to obtain qualitative insight Explains the process of management due diligence involving the practice for acquirers to investigate to evaluate performances and to ensure the compatibility between the managements of the acquirer and target company Explains the need and requirement of ethical due diligence to determine the engagement of management in unethical professional acts
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Sample Questions
1.
should
be
A. the restructuring can prevent an unwanted takeover B. the restructuring is expected to create value for shareholders C. the restructuring is expected to increase the firm's revenue D. the interests of bondholders are not negatively affected
2. By using a ____________, the firm can independently control considerable assets with a very limited amount of equity.
A. joint venture B. leveraged buyout (LBO) C. spin-off D. consolidation
3. A bidder that offers a higher price to the first fixed quantity of shares tendered and a lower second price for all remaining shares is engaging in __________.
A. a strategic acquisition B. a financial acquisition C. a two-tier tender offer D. shark repellent
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