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SHU BFIN 4241 - Mergers and Acquisitions

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---- SUMMER 2024 LECTURES ---
Columbia University - Intro to Finance
Columbia University Saturday Seminar
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BARUCH COLLEGE
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Columbia Intro to Finance
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CITY UNITY COLLEGE
SETON HALL UNIVERSITY
SHU ECO 2408 Money and Banking
SHU BFIN 4234/7331 Derivatives
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The course is designed to introduce the world of Mergers & Acquisitions and Leveraged Buyout (LBO) which includes the parties involved, the process of raising capital for M&A and buyouts. The course will cover all the valuation methods used for is assessing proposed business acquisition targets – both publicly traded and private companies. The class will cover the broader context - institutional, legal, and regulatory—of M&A valuation and due diligence work. These topics will be developed in lectures and readings, case studies, and modelling exercises

using Excel templates.

 

By the end of the course, you should:

1.       Have detailed knowledge of a fairly large number of M&A and Leveraged Buyout case studies.

2.       Be proficient in valuation and accounting terminology and concepts related to M&A transactions.

3.       Know how to develop financial projections and prepare valuations for (a) stand-alone enterprise value and (b) business combinations with synergies.

4.       Recognize areas of moral hazard for decisionmaker in M&A.

 

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Course Outline -  Lectures , Assignments and Exams

         

Syllabus

Syllabus Spring 2023

Professor's Inbox
(upload info for Professor)

Dropbox Link

Processor's Email

     

Microsoft Team call

TEAMS LINK M&A BFIN4241AA (Sign-in)

IN-PERSON

Tuesdays 3:30-5:00pm

Send an email to make an appointment

JUBILEE HALL ROOM #691 

REMOTE

Tue - Thu 9am-5pm

use the link below to make an appointment:

Make an Appointment Link

Professor's Biography

Professor's Biography

Tue & Thu
9.30 - 10.45am
JH 118


Jan 19

Jan 24

Jan 26

Jan 31

Feb 2

Feb 7

Feb 9

Feb 14

Feb 16

Feb 21

Feb 23

Feb 28

Mar 2

Mar 7 - 9

Mar 14

Mar 16

Mar 21

Mar 23

Mar 28

Mar 30

Apr 4

Apr 6

Apr 11

Apr 13

Apr 18

Apr 20

Apr 25

Apr 27

May 2

May 4

May 9 

May 11
Final Exam 12:20pm-2:20pm

REQUIRED TEXTBOOK

Image result for mergers acquisitions and other restructuring 10th edition

 

Chapter  1

Chapter 2 

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Chapter 3 

Chapters 4-5

Chapter 7-9

 

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Chapter 10 

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Chapter 13 

Chapter 18 

           

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Assigned Lectures

Syllabus Discussion

Student Introduction

Groups setup

 

Lecture #1: Introduction to M&A

Lecture 1 - Intro to M&A

Lecture #2: Regulatory Environment

Lecture 2 - Regulatory Environment

Lecture #3: The Corporate Takeover Market

Lecture 3 - Takeover Markets

Lecture #4: Acquisiton Process

Lecture 4 - Acquisition Planning

Lecture #5: Valuation Methods

Lecture 5 - Corporate Valuations

Corporate Valuations - Excel Spredsheet

Lecture #6: Projections amd Basic Financial Modeling

Lecture 6 - Projections

EXAM REVIEW

Midterm Exams I and II Review Outline and Instructions

     

EXAM - GOING OVER THE ANSWERS

 

Lecture #7: Valuation of Private Companies

Lecture 7 - Corporate Valuations

Lecture #8: Debt Raising and Leveraged Buyouts (LBO)

LBO Presentation - An Overview

Lecture #9: Transaction Analysis - Case Studies

   

FINAL PROJECT DISCUSSION

EXAM REVIEW

 
INDIVIDUAL AND GROUP PROJECT

Zoom Recording 4/27

     

EXAMS

                           

MidTerm Exam I
(On-line)

MidTerm Exam II
(On-Line)

                     

Final Exam

Final Exam Review

Homework Assignments

                 

HOMEWORK #1 (GROUP)

PRESENT TARGET SWOT ANALYSIS

 

Peloton Yahoo Finance Link

     

HOMEWORK #2 (GROUP)

STANDALONE VALUATION & PROJECTION ANALYSIS

 

Yahoo Financial Statement

Peloton Yahoo Finance Link

               

HOMEWORK #3 (GROUP)

VALUATION METHODS AND STANDALONE DEAL STRUCTURE 

 

Peloton Financial Information from Yahoo - December 2022

Peloton Yahoo Finance Link

   

HOMEWORK #4 (GROUP)

COMBINED ACCRETION/ STANDALONE SYNERGIES 

 

M&A Final Group Project Description with Rubric

Peloton Yahoo Finance Link

 

Case Studies

   

CASE STUDY 1

CASE STUDY ONE: Acquisition of Spirit Airlines

SEC Filing Links for Spirit Airlines

Form 14A Filing of Spirit JetBlue Merger

Form S-4 Filing by Frontier to merge with Sprint

Schedule TO Filing by JetBlue to acquire Sprint Airlines

CASE STUDY 2

CASE STUDY #2: Facebook Acquiring WhatsApp Q&D Approach

CASE STUDY #1: Cross-Border Acqusition

GROUP CASE STUDY

Peloton Financial Information from Yahoo

WSJ: Peloton Narrows Losses as Sales Fall Less than Forecast

Peloton no longer at 'brink of extinction' as shares rise 27%

   

CASE STUDY 3

CASE STUDY #3: Hyatt Financial Analysis and Valuation

CASE STUDY 4

CASE STUDY #4: Cedar Fair as a target to SeaWorld

           

CASE STUDY 5

CASE STUDY #5: Hotel Expo

CASE STUDY #5: Hotel Expo

CASE STUDY #5 Hotel Expo - Template with Answers

CASE STUDY 6

CASE STUDY #6: Alexandria Hotel LBO

Case Study #6: Alexandria Hotel Template

 

CASE STUDY 7

CASE STUDY #8: Colorado Dental - Proforma Balance Sheet

CASE STUDY #8: Colorado Dental - Transaction S&U, WACC and Debt Capacity

CASE STUDY #8: Colorado Dental: Debt Schedules - Floating and Fixed Rates

CASE STUDY 8

Case Study #7 Tyson Valuation Methods 1-7

 

CASE STUDY 9

CASE STUDY #10 Proud Steel and Dynamic Steel

CASE #10: Merger_Analysis

       

Reading Material

   

JetBlue Announces Record and Payment Dates for January 2023 Additional Prepayment to Spirit Stockholders

YouTube: Why JetBlue is Buying Spirit Airlines

   

CASE STUDY - Article 1: Peloton Amazon Partnership Agreement

                                         

Articles

   

Commonbond Acquires Nextgenvest

NY TIMES: JPMorgan acquisition of Frank Financial Aid Fraud

WSJ: When Executives Stop Selling Stock a Big Deal May be Ahead

WSJ: Salesforce Can Bid Aloha to Big Deals

WSJ: Nissan and Renault Amend Alliance Agreement

WSJ: FTC Loses Antitrust Challenge to Facebook Parent Meta

Nissan Renault Alliance Shakeup to Give Each Company More Independence

Public Storage Bids for Rival in Unsolicited 11 Billion Offer

Newmont Proposes 17 Billion Takeover of Australias Newcrest Mining

Blackwell Cap on Peloton

Business Model Analyst on Peloton

Peloton's unique approach to gaining customer

Goldman Sachs Technology Conference - Peoloton

Home Fitness Industry Report

Why Apple may buy Peloton

Various actions and announcements from Peloton

Peloton Investor Presentation

Blackwells Capitals hard-hitting presentation contributed to former CEO John Foleys resignation.

Yahoo Finance - Cedar Fair

Cedar Fair Bid for Cedar Fair

SeaWorld bidding for Cedar Fair Rejected

SeaWorld sweetened takeover offer for Cedar Fair

SeaWorld, Cedar Fair Slide as Theme-Park Merger Plan Crumbles

                   

LIVE CASE STUDY

Testing the Twitter Acquisition

Lululemon has approached Hydrow about a possible sale of Mirror

   

NRG to Buy Vivint for $2.8 Billion in Bet on Smart Home Tech

   

Final Project

                                                     

Individual Final Project due 5/9 (Upoad on Dropbox) 

Final Project: Public to Private LBO

Public to Private LBO Case Study Template

 

OPTIONAL TEXTBOOKS

textbookfirsteditionV2.jpeg.jpg

Link to purchase book (BFIN 4241)

Link to purchase book (BFIN 7225)

11188cover.jpg

Link to purchase book

                 

Chapters 5, 6 17

           

Chapter 17 

Chapter 11 

Chapter 11 - LBO - written by Professor Droussiotis

 

Chapter 9 

               
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