To pass this unit (requires a Mark of 50 or better) the student must pass the final examination.

CLASSES

Face-to-Face Teaching: Generally 18 hours

Timetable: Detailed timetable for classes are on the Centre’s web site www.mafc.mq.edu.au

Consultation Times: 

Students who wish to contact any of the teaching staff may do so through:

• The Unit’s iLearn site, in relation to general queries (so that all students may benefit); or 
• Individual consultation with the lecturer by email in the first instance, if necessary.

REQUIRED AND RECOMMENDED TEXTS AND/OR MATERIALS

Text: No text

Additional Readings: 

• Students are provided with printed notes comprising this Unit Guide, assessment details, lecture slides, selected background papers and articles and case study materials.
• Additional case study materials and reference materials are provided on the M&A unit iLearn site.
• The assigned readings, lectures and lecture notes together with information provided on the M&A unit webpage or information referred to on specified regulatory body websites are intended to cover substantially all examinable material.

Lecture Notes: Available in printed form and electronically via iLearn. 

Useful References: 

• Chapters 23 and 24 of Ford’s Principles of Corporations Law (Butterworths). These chapters provide detailed information and case law regarding statutory rules and regulations for takeovers, schemes of arrangement and reductions of capital in Australia.
• Levy and Pathak, Takeovers Law & Strategy, (Lawbook Co, 2009)
• Extension:
  • Copeland, Koller and Murrin, Valuation - Measuring and Managing the Value of Companies, John Wiley & Sons, 2000
  • Damadoran, Investment Valuation, John Wiley & Sons, 2002
  • Gaughan, Mergers, Acquisitions and Corporate Restructuring, John Wiley & Sons, 1996 or later edition.

Calculators: 

• A calculator that can handle basic functions will be useful and may be necessary for certain class exercises (at least one per group).
• A laptop computer with Excel will be useful and may be necessary for certain class exercises (at least one per group).

Assumed Access: Access to a computer with word processing and spreadsheet capability is assumed, as is general student computer literacy.

TECHNOLOGY USED AND REQUIRED

Unit iLearn Site: 

• Found by logging on to iLearn http://ilearn.mq.edu.au, then clicking on Mergers & Acquisitions.
• This is where you will find links to forums, downloadable resources and other important pages.
• Forums allow you to communicate with other students and lecturer(s) and may provide supplementary material.
• You are requested to post your questions to a forum at least 24 hours prior to the assignment submission date or the examination date. Questions posted after that time may not be answered. Please try to not leave your questions to the last few days.

Important Notice: 

• It is important that you familiarize yourself with the Unit’s iLearn site. 
• Students should check the Unit’s iLearn site regularly (minimum twice a week and prior to all lectures) and look for updates and distribution of materials (including case studies) related to the unit or assessments and, if relevant, participate in forum discussions. 

SESSION 1

Topics: 

• Overview of valuation process: Overview and illustrative examples

• Historical M&A activity levels

SESSION 2

Topics:

• Overview of M&A market: Types of M&A activity, Motivation for mergers and acquisitions, Brief regulatory overview

• M&A laws and regulations: History of laws and regulations

SESSION 3

Topics:

M&A laws and regulations (cont.): Schemes of arrangement and mergers, Accounting for goodwill, Takeover rules and regulations, Other types of transactions

SESSION 4

Topics: 

• Government regulations: Trade Practices Act, Foreign Investment Review Board, Other industry regulations

• Executing a takeover: Typical offer conditions, Takeover tactics

SESSION 5

Topics:

Valuation methodology and practice: Review of practice and procedures

SESSION 6

Topics:

• Framework for M&A activity: Strategic framework for transactions 

• Takeover defence: Directors' duties, Pre-emptive strategies, Reactive strategies

• Summary and Review

This Unit Guide may be subject to change. The latest version is on the Centre’s web site www.mafc.mq.edu.au.

Students should read the Unit Guide carefully at the start of semester.  It contains important information about the unit.  If anything is unclear, please consult one of the unit lecturers.  

University Policy on Grading:

• Macquarie University’s Academic Senate has established a Grading Policy available at http://www.mq.edu.au/policy/docs/grading/policy.html. Your final result will include: 
  • A Grade ranging from Fail Hurdle to High Distinction; and
  • A numerical Mark which is a summation of the individual assessment components, providing the examination component is passed.
• It is important to note:
  • The Policy does not require that a minimum or maximum number of students are to be failed in any unit; 
  • Grades will not be allocated to fit a predetermined distribution; and
  • Grades for all individual assessment items will be released to students, but Marks may not necessarily be released.

Specific Unit Grading: 

• To pass this unit (i.e. requires a Mark of 50 or better) the student must pass the final examination.
  • Students who have attained a total raw mark of 50% or greater in a unit, but have failed the Unit’s exam requirement and who have demonstrated “sufficient effort” in the exam, will be granted a single opportunity to sit a Supplementary Exam which will be graded on a pass/fail basis. The unit mark and grade for students who pass this examination will be those corresponding to the original total raw mark of all their assessment tasks, including the original exam. That is, the Supplementary Hurdle Exam only determines the meeting of the hurdle requirement. Students who have attained a raw mark of 50% or greater in a unit, yet failed all attempts at the requirement, will be awarded an FH grade with a final mark of 49.
• All final Marks and  Grades in the Applied Finance Centre are determined by a grading committee and are not the sole responsibility of the unit convenor.
• The core criteria used to assess student work in this unit are: 
  • Knowledge and understanding: Understanding key ideas, knowledge and use of concepts.
  • Application: Ability to apply theoretical ideas and frameworks in practice and in a critically reflective way. 
  • Reasoning and analysis: Ability to analyse, use critical reasoning and principles to formulate a position, balancing theory and personal reflection. 
  • Professional literacy and research: Understanding of professional factors (language and landscape) and ability to undertake appropriate research. 
  • Communication and presentation: Ability to communicate and present effectively (written and oral, as relevant).
  • Use of mathematical and statistical ideas: Ability to use mathematical and statistical ideas, methods and formulae appropriately. 
• Performance in relation to each of these criteria are assessed against the University’s grading descriptors:

Review of Grade and final examination Script viewing:

• A student who has been awarded a final grade for a unit and who does not believe it is an accurate reflection of their performance, and has grounds for such a claim and can demonstrate those grounds, may apply to have their grade reviewed. 
• For information on requesting a review of grade and/or viewing your final exam script, please refer to the University’s Grade Appeal Policy at http://www.mq.edu.au/policy/docs/gradeappeal/policy.html and MAFC Program Rules & Procedures at http://www.mafc.mq.edu.au.