Mergers, Acquisitions and Strategic Alliances (masa)

Title of the course: Mergers, Acquisitions and Strategic Alliances (MASA)

Description: Over the last decade, there have been significant changes in the competitive environment of firms. Enhanced movement of capital and goods, increased communication facilities, reduced transportation costs, technological advancements has led to reduced time to market for firms globally. Firms were evaluating their competitive strategies on a continuous basis. The entrepreneur in the firm is exploring or advancing new organizational forms (equity or alliance arrangements) or innovating in the current organizational forms to enhance competitive advantage or capabilities of firms.

This course would expose students to conceptual understanding of mergers, acquisitions and strategic alliances. It would also expose students to the problems & challenges involved in planning, negotiation and management of mergers, acquisitions and strategic alliances.

Objectives: At the end of the course, students would be able to appreciate:

o The importance of various inorganic or corporate strategic initiatives to the firm

o Understand motives behind mergers, acqusitions and strategic alliances

o Cover basic concepts in valuation, due diligence, structuring and post merger integration issues

o Understand the role of top management and middle level management in structuring and managing strategic alliances

Pedagogy: The course would be primarily a mix of readings, case discussions, group learning and lectures.

Session No Topic Case / Readings

1 Review basic concepts in corporate strategy • Read HBR Article: Competitive advantage to Corporate Strategy by Porter

• Read HBR Article: Creating Corporate Advantage by David Collis & Cynthia Montgomery

2 Introduction to Mergers and Acquisitions • Read HBR Article: When to Ally and When to Acquire

• Read Case: Tata Corus

Session No Topic Case / Readings

3 Motives for Mergers and Acquisitions • Read Weston Chapter 5: Strategic Process

• Read Weston Chapter 6: Theories of Mergers and tender offers

4 • Read Case: Newell Co. Corporate Strategy

5 Basics of Valuation • Read: What's it worth – A General Manager Guide to valuation

• Read: Using APV – a better tool for valuation

6 • Case:

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