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Course File FIN 8702
Course File FIN 8702
1/ACAD/003
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Programme Core Programme Elective Open Elective
VAC
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8. Frequency of offering (check one): Odd Even Any Semester Both Semester
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9. Focus: Employability Entrepreneurship Skill Development Basic Knowledge
Problem-solving methodologies
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Total lecture, Tutorial and Practical Hours for this course (Take 15 teaching weeks per semester)
Possible usefulness of this course after its completion i.e., how this course will be practically useful
to the students once it is completed
COFIN8702.2 Analyze the strategic rationale for and against an M&A transaction
COFIN8702.3 Value a firm using various valuation techniques such as valuation multiples,
discounted cash flow model, and discounted abnormal earnings model
COFIN8702.4 Explain how to capture value through M&A and create synergies
Content Summary:
Downsizing of the organization: Sell-off and Divestures- spin-off, split off, split up, Equity carve-outs
explanation and rationale, voluntary liquidations, analysis and valuation of Sell off, Govt. divestment plan
for PSUs.
Content Summary:
Growth opportunities and M&A
BCG Matrix
Content Summary:
Discounted cash flow valuation: cash flow to the firms, expected growth, discount rate, asset life, terminal
value.
Comparable valuation or relative valuation: defining a peer group, picking the right multiples, standardized
values and multiples, determinants of multiples, and use of comparable firms.
Content Summary:
Provisions of Companies Act 2013 and SEBI regulations on funding for acquisitions
a) Before coming to the class please read latest news on Mergers and Acquisitions
b) All students must secure at least 40% marks in each evaluation component
c) All students must maintain attendance at least 75%
d) All students must submit a project either in group or single
(Mention SDGs number out of 17 SDGs for which this (Mention the level of correlation for each SDG)
course is mapping)
a) SDG……4……… ✔
1. Weak 2. Moderate 3. High
b) SDG……
Text Books:
T1. Godbole, P.G. (2013). Mergers, Acquisitions and Corporate Restructuring, 2 nd Edition; Vikas
Publishing House Pvt Ltd., NOIDA, India
T2. Stephen, H. Penman. (2013). Financial Statement Analysis and Security Valuation, 3 rd Edition,
McGraw Hill Education (India)
Reference Books
R1. Damodaran, A. (2001). Corporate finance: Theory and Practice, 2 nd Edition; John Wiley
R2. Kapil, S. & Kapil, N.K. (2018). Mergers and Acquisitions: Strategy, Valuation, Leveraged
Buyouts and Financing, Wiley
E-Book: NA
https://www.youtube.com/watch?v=S7DoKFPOhZk
MOOC Supplemented:
https://www.udemy.com/course/introduction-to-corporate-finance/
https://www.udemy.com/course/build-a-dcf-model/
1. Discussions through case studies Exams (MSE & ETE) CO1, CO2,
CO3, CO4
Assignment
Assignment
3. Problem discussion on the process for Exams (MSE & ETE) CO1, CO2
valuation of mergers and acquisitions and CO4
and buyouts Assignment
Practical Content
1. NA NA NA NA
You, a team (group of 3 students) of equity analysts, are working for the equity research division of a
large financial institution. Your task is to prepare a report on the financial valuation of ONE company.
After analyzing the company using concepts and techniques learned in this course, your group will
make recommendations on whether your clients should invest in the company’s shares.
Research-related Skills
Awareness/Reasoning
Self-directed Learning
Communication Skills
Analytical Reasoning
Readiness/Qualities
Information/Digital
Problem-Solving
Critical Thinking
Leadership
Literacy
Course Outcome PO1 PO2 PO3 PO4 PO5 PO6 PO7 PO8 PO9 PO10 PO11 PO12
COFIN8702.1
3 2
COFIN8702.2 2 3 2
COFIN8702.3 2 3 3 3 3
COFIN8702.4 2
3 2 2 3 2
1.25 0 2 1.25 1.25 0 0.75 0 2 0 1 0.5
Average
L Successful/partially C0FIN8702.1 NA
7. unsuccessful
L Partially C0FIN8702.1 NA
8. unsuccessful/unsuccessful
acquisition
44. L Revision
45. L Revision