IMT SYLLABUS BUSINESS VALUATION AND CORPORATE RESTRUCTURING

1.      Elective : Finance

Credit: 2

BUSINESS VALUATION AND CORPORATE RESTRUCTURING

Objectives :

1.        To explain business valuation techniques

2.        To set analytical techniques for  identification of acquisition targets

3.        To analyse  policies of mergers and acquisitions, spin off and demerger

4.        To explain techniques of fixation of purchase consideration and mode of payment

5.        To understand  relevant corporate laws  and tax issues.

Contents:

Business valuation techniques – Discounted cash flow approach, Economic value added approach, Dividend and P/E Ratio based models – Special valuation approaches – valuation of loss making companies and knowledge based companies

Corporate restructuring techniques : Business acquisition, amalgamation in the nature of merger, de-merger, spin off and delisting.

Analysis of merger techniques – purchase consideration – mode of payment

Analysis of acquisition and demerger cases

Acquisition of sick companies - tax advantage – turnaround problem

HR issues in merger and acquisition

Evaluation of merger and acquisition reference.

Main Reading :

       IMT Study Material (SIM)

Additional Readings:

1.     Damodaran on valuation

2.     Krallinger, J, Mergers & Acquisitions, McGrawHill, 1997.

3.     Gaugham, P.A., Mergers, Acquisition and Corporate Restructuring, John Wiley & Sons, Inc., 1996.