We have added a new open access module "Mergers and Acquisitions (M&A)" that guides you through the relevant steps of the M&A process from a finance point of view.
The heart of the module is a simple analytical tool that allows the user to get from the acquisition price to the value and ownership implications of a deal. The tool also highlights how and to whom a specific transaction adds value, and why the market might react differently.
The module concludes with a discussion of why it is hard to add value with M&A. It suggests a rule of thumb according to which the expected synergies of the deal must correspond to at least 50% of the target's stand-alone value for the transaction to make financial sense for the acquirer.
To learn more about this module, please visit the course page.