Finance of Mergers and Acquisitions: Valuation and Pricing from Coursera

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Syllabus

Course Orientation and Module 1: Overview of M&A Topics and Evidence

You will learn the basic terminology of M&A, which we will use throughout the course. You will also learn why M&A deals happen, and how to identify drivers of M&A that are truly value-enhancing. Finally, you will study the history of M&A and learn key facts about previous M&A waves.

Module 2: Company Valuation

What determines a company’s stock price? Placing a value on companies is a key tool for M&A analysis. This module focuses on the main methods available to estimate stock prices, including discounted cash flow valuation and multiples-based valuation. You will learn these tools using the most up-to-date Finance theory and real-world examples.

Module 3: The Role of Target and Acquirer Valuation in M&A

Valuation analysis is a major part of the work that investment banks do when advising companies involved in M&A deals. You will learn that both target and acquirer valuation matter, and why. This module also focuses on what is special about the valuation and pricing of non-publicly traded targets. Finally, you will learn how to best use transaction multiples in the valuation of M&A deals.

Module 4: Synergies and Hostile Takeovers

This module starts with how to place a value on synergies using cash flow forecasts provided by management, and also using the stock market reaction to a new M&A deal. Next, you will also learn how to relate synergies to the premium paid for targets and how to calculate the net present value (NPV) of a deal. You will also learn the specifics of hostile takeover deals with a focus on governance, legal, and valuation issues.

Course Conclusion

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Helpers learners contrast the reasons why M&A occur with the actual value-driven reasons for M&A

Provides a foundation for learners to understand how M&A can be used for personal gain as well as improved company performance

Teaches methods to calculate and analyze synergistic effects of M&A and their impact on strategic decision-making

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Finance of Mergers and Acquisitions: Valuation and Pricing with these activities:

Review Concepts of Valuation

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Begin by reviewing the foundational concepts of valuation to prepare for the course content.

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Review introductory concepts of valuation
Complete practice problems or case studies

Course Materials Compilation

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Organize and review all course materials, including lecture notes, assignments, and readings, to enhance understanding and retention.

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Download and print or save all course materials
Create a system for organizing materials by topic or module
Review materials regularly to reinforce learning

Financial Modeling Tutorials

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Enhance your understanding of financial modeling techniques by following online tutorials or workshops to improve your analytical skills.

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Identify reputable online tutorials or workshops
Follow the tutorials step-by-step
Apply the techniques to practice problems

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DCF and Multiples Practice

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Complete practice drills to strengthen understanding of discounted cash flow (DCF) and multiples-based valuation.

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Solve DCF valuation problems
Apply multiples to value companies
Compare results and analyze sensitivity

M&A Resource Compilation

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Gather and organize useful resources such as articles, reports, and case studies related to M&A to supplement your learning.

Browse courses on M&A

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Identify relevant resources through research
Organize resources into categories or topics
Share the compilation with other students or interested individuals

M&A Simulation Project

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Participate in a simulation project that involves valuing and analyzing M&A deals, allowing you to apply your knowledge and skills in a practical setting.

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Join or form a team for the simulation
Select a target and acquirer company
Perform in-depth analysis and valuation
Present your findings and recommendations

M&A Deal Case Study

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Conduct an in-depth analysis of a real-world M&A deal, valuing the target and acquirer companies and assessing synergies.

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Identify a recent M&A transaction
Gather financial data and industry information
Perform target and acquirer valuation
Estimate potential synergies
Write a detailed report summarizing your findings

M&A Case Competition

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Participate in a case competition to showcase your M&A valuation and analysis skills against other students.

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Form a team and register for the competition
Analyze the case study provided
Develop a valuation model and prepare a presentation
Present your findings to a panel of judges
Receive feedback and learn from other teams

Career center

Learners who complete Finance of Mergers and Acquisitions: Valuation and Pricing will develop knowledge and skills that may be useful to these careers:

Financial Analyst

Financial Analysts study financial data to identify trends and make recommendations on investments. They use their knowledge of finance and economics to make informed decisions about which stocks, bonds, or other investments to buy or sell. This course would be beneficial to a Financial Analyst because it provides a deep understanding of the principles of finance and valuation, which are essential for making sound investment decisions. The course also covers topics such as mergers and acquisitions, which are common transactions in the financial industry.

See salaries and explore the career path for Financial Analyst

Investment Banker

Investment Bankers provide financial advice to companies and governments. They help companies raise capital by issuing stocks or bonds, and they help governments manage their debt. This course would be useful to an Investment Banker because it provides a comprehensive overview of the principles of finance and valuation. The course also covers topics such as mergers and acquisitions, which are common transactions in the investment banking industry.

See salaries and explore the career path for Investment Banker

Private Equity Investor

Private Equity Investors invest in companies that are not publicly traded. They typically buy companies with the goal of improving their operations and selling them for a profit. This course would be beneficial to a Private Equity Investor because it provides a deep understanding of the principles of finance and valuation, which are essential for making sound investment decisions. The course also covers topics such as mergers and acquisitions, which are common transactions in the private equity industry.

See salaries and explore the career path for Private Equity Investor

Venture Capitalist

Venture Capitalists invest in early-stage companies with the goal of helping them grow and succeed. They typically provide funding and mentorship to these companies. This course would be beneficial to a Venture Capitalist because it provides a deep understanding of the principles of finance and valuation, which are essential for making sound investment decisions. The course also covers topics such as mergers and acquisitions, which are common transactions in the venture capital industry.

See salaries and explore the career path for Venture Capitalist

Corporate Finance Manager

Corporate Finance Managers are responsible for the financial planning and analysis of a company. They make decisions about how to raise capital, how to invest the company's money, and how to manage the company's debt. This course would be beneficial to a Corporate Finance Manager because it provides a deep understanding of the principles of finance and valuation, which are essential for making sound financial decisions. The course also covers topics such as mergers and acquisitions, which are common transactions in the corporate finance industry.

See salaries and explore the career path for Corporate Finance Manager

Financial Planner

Financial Planners help individuals and families plan for their financial future. They provide advice on investments, retirement planning, and estate planning. This course would be useful to a Financial Planner because it provides a comprehensive overview of the principles of finance and valuation. The course also covers topics such as mergers and acquisitions, which are common transactions in the financial planning industry.

See salaries and explore the career path for Financial Planner

Actuary

Actuaries use mathematical and statistical techniques to assess risk and uncertainty. They work in a variety of industries, including insurance, finance, and healthcare. This course would be beneficial to an Actuary because it provides a deep understanding of the principles of finance and valuation, which are essential for making sound risk assessments. The course also covers topics such as mergers and acquisitions, which are common transactions in the insurance industry.

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Economist

Economists study the production, distribution, and consumption of goods and services. They use their knowledge of economics to make recommendations on public policy. This course would be useful to an Economist because it provides a comprehensive overview of the principles of finance and valuation. The course also covers topics such as mergers and acquisitions, which are common transactions in the economy.

See salaries and explore the career path for Economist

Investment Advisor

Investment Advisors provide financial advice to individuals and families. They help clients make informed decisions about their investments. This course would be beneficial to an Investment Advisor because it provides a deep understanding of the principles of finance and valuation, which are essential for making sound investment recommendations. The course also covers topics such as mergers and acquisitions, which are common transactions in the investment advisory industry.

See salaries and explore the career path for Investment Advisor

Credit Analyst

Credit Analysts assess the creditworthiness of borrowers. They use their knowledge of finance and economics to make recommendations on whether or not to lend money to a particular borrower. This course would be beneficial to a Credit Analyst because it provides a deep understanding of the principles of finance and valuation, which are essential for making sound credit decisions. The course also covers topics such as mergers and acquisitions, which are common transactions in the credit analysis industry.

See salaries and explore the career path for Credit Analyst

Fraud Examiner

Fraud Examiners investigate financial fraud. They use their knowledge of accounting and auditing to identify and prevent fraud. This course would be useful to a Fraud Examiner because it provides a comprehensive overview of the principles of finance and valuation. The course also covers topics such as mergers and acquisitions, which are common transactions in the fraud examination industry.

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Tax Accountant

Tax Accountants prepare and file tax returns for individuals and businesses. They use their knowledge of tax law to minimize their clients' tax liability. This course would be useful to a Tax Accountant because it provides a comprehensive overview of the principles of finance and valuation. The course also covers topics such as mergers and acquisitions, which are common transactions in the tax accounting industry.

See salaries and explore the career path for Tax Accountant

Auditor

Auditors examine financial statements to ensure that they are accurate and complete. They use their knowledge of accounting and auditing to identify any errors or fraud. This course would be useful to an Auditor because it provides a comprehensive overview of the principles of finance and valuation. The course also covers topics such as mergers and acquisitions, which are common transactions in the auditing industry.

See salaries and explore the career path for Auditor

Compliance Officer

Compliance Officers ensure that their companies comply with all applicable laws and regulations. They use their knowledge of law and compliance to identify and prevent any violations. This course would be useful to a Compliance Officer because it provides a comprehensive overview of the principles of finance and valuation. The course also covers topics such as mergers and acquisitions, which are common transactions in the compliance industry.

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Risk Manager

Risk Managers assess and manage risk for their companies. They use their knowledge of risk management to identify and mitigate any potential risks. This course would be useful to a Risk Manager because it provides a comprehensive overview of the principles of finance and valuation. The course also covers topics such as mergers and acquisitions, which are common transactions in the risk management industry.

See salaries and explore the career path for Risk Manager

Finance of Mergers and Acquisitions

Valuation and Pricing

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