Finance III (Mergers and Acquisitions)

Course Objectives

Needless to say, mergers and acquisitions play an imperative role as an option for accelerating the business growth strategy of one’s company. In Japan, we are seeing an increase in the number of "triangular mergers," and cases of foreign-affiliates acquiring and merging with Japanese companies are likely to continue in future. On the other hand, the number of companies who struggle with finding a counter-action policy when they are approached for merging and acquisition and who are not capable of keeping their heads cool (while accessing the details of the proposal and its impact on the business as well as presenting their findings to the stock holders) is rather high.

In this course, you will get an in-depth understanding on each individual scheme for Real Option, Project Finance, mergers and acquisitions and internal spin-offs by going through the material that covers leading financial practices. We aim to give you a comprehensive approach with regard to how to deal with acquisition proposals as well as how to raise your company value through acquisitions of other businesses and internal spin-offs.

Finance III encompasses specific features and similarities between valuation you have learned in Finance I (Corporate Finance and Valuation) and fund-raising you have learned in Finance II (Finance Strategy and Fund-raising). The course administrator will assume that this knowledge is acquired, thus make sure that you are ready to apply what you have already learned (in Finance I and II).

This course is designed for those who are visionary business leaders aiming to acquire basic knowledge required for decision making on issues in the financial sector and with the business growth strategy.

 

Course Details

Programs: Full-time MBA, Part-time MBA
Discipline: Accounting and Finance
Course Level: Applied Course
Required/Elective Course: Elective Course
Number of Credits: 1.5
Report: Day 4
Hours Per Class: 3 hours
Class Capacity: 35 (Part-time MBA)

 

Recommended Preliminary Courses

- Critical Thinking
- Finance I
- Finance II

 

Theme/Reading Materials

Day 1
Session A
THEME Real Option
CASE ・Aqua Bounty
Session B
THEME Real Option (Continued)
CASE ・Aqua Bounty
 
Day 2
Session A
THEME Project Finance
CASE ・BP Amoco(B): Financing Development of the Caspian Oil Fields
Session B
THEME Project Finance(Continued)
CASE ・BP Amoco(B): Financing Development of the Caspian Oil Fields
 
Day 3
Session A
THEME Leveraged Buyout
CASE ・Congoleum Corporation (Abridged)
Session B
THEME Leveraged Buyout(Continued)
CASE ・Congoleum Corporation (Abridged)
 
Day 4
Session A
THEME Mergers and Acquisitions
CASE ・Philip Morris Companies and Kraft, Inc.
Session B
THEME Mergers and Acquisitions(Continued)
CASE ・Philip Morris Companies and Kraft, Inc.
 
Day 5
Session A
THEME Internal Spin-offs
CASE ・AMTELECOM GROUP INC.
Session B
THEME Internal Spin-offs(Continued)
CASE ・AMTELECOM GROUP INC.
 
Day 6
Session A
THEME Mergers and Acquisitions
CASE ・Crown Cork & Seal/CarnaudMetalbox
Session B
THEME Mergers and Acquisitions(Continued)
CASE ・Crown Cork & Seal/CarnaudMetalbox

 

Textbook (Please purchase the following textbook before the course starts.)

Principles of Corporate Finance. 12th ed. Global ed.

Richard Brealey and Stewart Myers and Franklin Allen, 2017.
McGraw-Hill Education.
(https://www.mheducation.com/highered/product/principles-corporate-finance-brealey-myers/M1259144380.toc.html)

 

Reference

Analysis for Financial Management.12th ed.

Robert Higgins, 2019.
McGraw-Hill Education.
(https://www.mheducation.com/highered/product/analysis-financial-management-higgins/M1259918963.html)

Valuation: measuring and managing the values of companies. 6th ed.

McKinsey & Company Inc. , Tim Koller, Marc Goedhart, David Wessels, 2015.
Wiley.
(https://www.wiley.com/en-us/Valuation%3A+Measuring+and+Managing+the+Value+of+Companies%2C+6th+Edition-p-9781118873700)

Faculty

Masaru Hoshino
Accounting and Finance, Management Philosophy, Specialization
"Welcome to the world of Finance ! In my class, I emphasize how important AND interesting it is to learn Finance as a necessary tool for you to become a business leader. By mastering this exciting subject you will be able to deepen your understanding on how business practice is structured based on Finance concepts. For example, you can understand what a world class automobile firm aims for OTHER THAN improving production efficiency by employing the just-in-time inventory system. Yes, Finance makes you to see the business world in a much more exciting way !"
Tadahisa Saito
Creation
"A good manager need to have extensive management experiences and accurate understanding of various principles and frameworks of management which are effectively and organically integrated in order to tackle with various management problems he or she faces day to day. MBA education aims to first disassemble student’s practical knowledge and experiences, and then to integrate them with fundamental theories and frameworks underlying them so that he or she may make appropriate judgment and decisions on difficult and complicated management problems. I would like to emphasize that you should not leave what you have learned in each discipline or course stand alone but try to integrate them into one big ecosystem of management. Through your study at GLOBIS, I really look forward to seeing you metamorphose into really visionary leaders who create and innovate the societies by creating and renovating businesses with enhanced social corporate value."

Faculty

Masaru Hoshino
Masaru Hoshino
Accounting and Finance, Management Philosophy, Specialization
"Welcome to the world of Finance ! In my class, I emphasize how important AND interesting it is to learn Finance as a necessary tool for you to become a business leader. By mastering this exciting subject you will be able to deepen your understanding on how business practice is structured based on Finance concepts. For example, you can understand what a world class automobile firm aims for OTHER THAN improving production efficiency by employing the just-in-time inventory system. Yes, Finance makes you to see the business world in a much more exciting way !"
Tadahisa Saito
Tadahisa Saito
Creation
"A good manager need to have extensive management experiences and accurate understanding of various principles and frameworks of management which are effectively and organically integrated in order to tackle with various management problems he or she faces day to day. MBA education aims to first disassemble student’s practical knowledge and experiences, and then to integrate them with fundamental theories and frameworks underlying them so that he or she may make appropriate judgment and decisions on difficult and complicated management problems. I would like to emphasize that you should not leave what you have learned in each discipline or course stand alone but try to integrate them into one big ecosystem of management. Through your study at GLOBIS, I really look forward to seeing you metamorphose into really visionary leaders who create and innovate the societies by creating and renovating businesses with enhanced social corporate value."