Understanding and Managing Mergers and Acquisitions

About

The course deals with the economic, legal and financial aspects of Mergers & Acquisitions (M&A).

Many executives say they use M&A (Mergers & Acquisitions) as a means to consolidate or expand the market position or increase its production efficiency. Most mergers and acquisitions, however, fail to create value, leading to the so-called ‘merger paradox’. The global M&A market has soared to astronomical levels in the last two decades, with total deals announced reaching values up to US$ 4 trillion annually since 2008. M&As have been one of the major capital expenditures of corporations since 2000, often exceeding the levels of Fixed Investment and R&D combined. Major M&A transactions often appear in the headlines of newspapers. Notable examples for this are the unfriendly takeover bid of Mexico’s América Móvil for the Dutch telecom provider KPN as well as Apple’s successful acquisition of Beats Electronics, a company partly owned by the famous rapper Dr. Dre. Moreover, many executives deal with smaller M&A transactions on a daily basis. Many of these executives would tell you that they use M&A as a way to consolidate or expand the market position of their firms or to increase their efficiency, and other business development objectives. Yet, most mergers and acquisitions repeatedly fail to generate economic value. This is what some experts call the ‘merger paradox’.

The explosive growth in the number, size, and complexity of mergers and acquisitions during the latter part of the 1990s and between - and especially since 2008 has demonstrated how ingrained this way of doing business has become in the global business community. Interestingly, an M&A outburst is always followed by a similar move, but in the opposite direction: downwards, through divestitures. Many acquirers subsequently pursue spin-offs or split-ups. These dynamics form the frame of a course that contributes to understanding the position of firms, their investors and a other stakeholders.

What about the M&A market in 2024?

According to Gunvor Ellingsen, Head of Corporate M&A and Central Business Development, Shell, the M&A market in 2024 is marked by cautious optimism. “The need for strategic adaptability and an increased focus on sustainability. Companies that can navigate this complex risk landscape leveraging technology and strategic partnerships are well-positioned to thrive.”

A subsequent question is what instruments companies have to discover Sustainability and other Environment, Social and Governance (ESG) issues in the companies they want to acquire.

Furthermore, many other questions arise regarding M&A, such as: (1) which M&A Strategies are used? (2) what is the role of the financial advisor? (3) which legal documents are used and what do they entail? (4) how can Corporate Governance be properly arranged after the Merger or the Acquisition? (5) what is the role of Private Equity? (6) how does a Leveraged Buy Out work? (7) what restrictions does Competition Law impose on takeovers and mergers? (8) what role does Executive play in M&A? (9) how does a public offer work? (10) what are the best negotiation techniques?

The M&A summer course provides its participants with answers to these (and more) questions and will present an introduction and insight into the world of merger markets as well as a discussion on the topic of in the influence of sustainability in a broad sense (ESG) on M&A.

Below you can find a trailer for this course. In addition, we have made a sample available for this course. See: https://www.youtube.com/watch?v=wYC5RxfeuAQ.

Course leader

Prof. dr. Wilco J. Oostwouder

Target group

Bachelor and Master students with an interest in Law & Economics. Ph.D. students and young professionals are also welcome to apply.

Course aim

To equip students and young professionals with an insight into the background and development of key issues of M&A, relevant transaction documents and valuations. In addition, participants will acquire valuable negotiation skills as well as learn how to draft acquisition proposals. This course is also an excellent introduction to the course ‘Mergers, Acquisitions and restructuring’ in the LLM/MSc “Law & Economics”/’Economics & Law’ programs at Utrecht University.

Fee info