Cross-border Mergers and Acquisitions

  • Credits: 4
  • Ending: Examination
  • Range: 2C
  • Semester: summer
  • Year: 2
  • Faculty of Commerce

Teachers

Included in study programs

International Trade Management

Teaching results

In case of successful mastering of the subject, students will acquire the following knowledge in particular:
- knowledge of the specific requirements and procedure for the implementation of international mergers and acquisitions involving a Slovak company (investor or object of investment),
- an overview of successful cases and failed transactions,
- knowledge of the specifics and risks of the environment and process of foreign direct investments.
In case of successful mastery of the subject, students will acquire the following skills in particular:
- adopting a specific due diligence procedure for cross-border mergers and acquisitions,
- structuring of financial analysis and valuation (valuation) of a specific case (deal),
- processing of risk analysis with an emphasis on regulatory, legal and tax due diligence,
In case of successful mastering of the subject, students acquire the following competences in particular:
- mastering the complex process of due diligence and valuation of the subject of investment in the form of a cross-border merger or acquisition.

Indicative content

International mergers and acquisitions as a transaction process (buyer vs. seller). Stages and timing of due diligence. Types of due diligence and their importance. Valuation and value of synergies in cross-border mergers and acquisitions (M&As).

Support literature

FERENČÍKOVÁ, Soňa, Daniel KRAJČÍK, Jana PÁSZTOROVÁ a Alexandra PAPPOVÁ. Stratégia medzinárodného podnikania: investície, partneri a ľudské zdroje. Bratislava: Vydavateľstvo EKONÓM, 2010, 318 s. ISBN 978-80-225-3063-7.
MYŠIČKA, V. a kol. Inovácie a trendy v M&A. Praktická príručka. 2020. C. H. Beck. 360 s. ISBN: 978-80-89603-84-8.
REED LAJOUX, Alexandra The Art of M&A, 5th ed., Mc Graw-Hill 2019, ISBN 978-1260121780
WHITAKER, Scott C. Cross-border Mergers and Acquisitions. Wiley 2016, ISBN 978-1119042235

Syllabus

1. Introduction to the implementation of international mergers and acquisitions. 2. Presentation of the due diligence process. 3. Phases and timing of M&A. Buyer's side. 4. Stages and timing of M&A. Seller's side. 5. Structure, purposes and types of due diligence. 6. Due diligence – net working capital and net debt. 7. Due diligence – part financial performance (underlying financial performance). 8. Tax and legal components of due diligence. 9. Valuation and its process. 10. Income approach and valuation methods. 11. Valuation of DFC, the value of synergies and the context of value creation through M&A. 12. Integration of due diligence, successful examples from practice and failures. 13. Summarization of due diligence and overall evaluation.

Requirements to complete the course

10% active participation in seminars
30% test
60% preparation and presentation of a specific cross-border investment

Student workload

Total: workload 4 credits x 26 h = 104 h.
Separate load for individual educational activities
Participation in seminars: 26 hours
Preparation for seminars: 26 hours
Preparation of business case and presentation: 52 hours

Language whose command is required to complete the course

Slovak, English

Date of approval: 09.02.2023

Date of the latest change: 30.03.2023