This 2-day certificate program will introduce participants the fundamental concepts in M&As, including the motivations of firms for undertaking takeovers, key steps taken in typical takeover processes, valuation methods used in M&As and the financial implications of the interaction between key players, such as merging firm managers and investment banks.
The Turkish M&A market has witnessed a tremendous growth over the past decade. The managers of domestic firms are now expected to evaluate and provide opinion on the financial feasibility of the takeover proposals that their firms are facing. Such takeover projects may include proposals to acquire competitor firms operating in the same industry or plans for selling minority equity to private equity firms. This program aims to provide the necessary skills to all levels of financial managers to help them manage the acquisition process in an educated way.
In the first day of the program, we will start by discussing the economic importance of M&A transactions using real-world examples. Why do firms merge? What are their strategic objectives in doing so? We will answer these important questions to have a better understanding of the motives of the merging firms. Then, we will focus on the Turkish M&A market to have a deeper understanding of the current state of the domestic market. The M&A process can take years from deal initiation to closing. What are the important steps in this process? Who are the decision makers involved? We will discuss these questions from the buyer and the seller firm perspectives. In the final part of the first day, we will explore different types of valuation methods used by the M&A professionals.
The second day starts with a discussion of one of the most important documents in an M&A transaction, the Share Purchase Agreement (SPA). We will use real-world cases to investigate the ingredients of these agreements. Private equity firms are major players in the M&A market. We will first discuss their business model and then explore their involvement in the corporate takeover market. The final part of the day includes a series of discussions on the recently announced/closed deals from the domestic and international markets.
Required equipment: A portable laptop/tablet with a spreadsheet program.
Level of the program: Participants should have an understanding (not mastery) of the basic concepts in finance and accounting, such as time value of money, the risk-return relationship and financial statements analysis. For the valuation exercise, basic spreadsheet skills (e.g., copy and paste cell contents, type in formulas to cells) are required. A good portion of the readings are in English, so the ability to read in English would enhance the benefits from the program.