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Finance of Mergers and Acquisitions: Valuation and Pricing

University of Illinois at Urbana-Champaign

About this Course

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This course teaches how to value and price M&A deals and to choose the optimal financing mix for an M&A deal. The course focuses on all the major types of M&A deals including strategic M&A, private equity leveraged buyouts (LBOs), and restructuring deals such as spinoffs and asset transfers.

Flexible deadlines

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Shareable Certificate

Earn a Certificate upon completion

100% online

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Intermediate Level

Approx. 17 hours to complete

English

Subtitles: English

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Flexible deadlines

Reset deadlines in accordance to your schedule.

Shareable Certificate

Earn a Certificate upon completion

100% online

Start instantly and learn at your own schedule.

Intermediate Level

Approx. 17 hours to complete

English

Subtitles: English

Could your company benefit from training employees on in-demand skills?

Try Coursera for Business

Instructor

Instructor rating

5/5 (13 Ratings)

Heitor Almeida

Professor of Finance, Stanley C. and Joan J. Golder Chair in Corporate Finance

Department of Finance, College of Business

64,626 Learners

5 Courses

Offered by

University of Illinois at Urbana-Champaign

The University of Illinois at Urbana-Champaign is a world leader in research, teaching and public engagement, distinguished by the breadth of its programs, broad academic excellence, and internationally renowned faculty and alumni. Illinois serves the world by creating knowledge, preparing students for lives of impact, and finding solutions to critical societal needs.

Start working towards your degree

This Course is part of an online degree program offered by the University of Illinois at Urbana-Champaign. When you apply for a for-credit non-degree course through the university and complete it online, it counts as credit hours towards a degree at Illinois. All you have to do is apply through the university.

Master of Business Administration (iMBA)

University of Illinois at Urbana-Champaign

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Syllabus - What you will learn from this course

Week

Week 1

4 hours to complete

Course Orientation and Module 1: Overview of M&A Topics and Evidence

You will learn the basic terminology of M&A, which we will use throughout the course. You will also learn why M&A deals happen, and how to identify drivers of M&A that are truly value-enhancing. Finally, you will study the history of M&A and learn key facts about previous M&A waves.

4 hours to complete

11 videos (Total 103 min), 6 readings, 5 quizzes

11 videos

Course Introduction6m

Meet Professor Almeida5m

Learn on Your Terms30s

Module 1 Objectives and Overview3m

Good Reasons to Engage in M&A Transactions13m

Bad Reasons to Engage in M&A Transactions10m

Private Equity LBOs and Other Restructuring Tools 16m

Friendly vs. Hostile Deals, and M&A Regulation17m

A Brief History of M&A12m

Does M&A Create Value?13m

Module 1 Review2m

6 readings

Syllabus10m

About the Discussion Forums10m

Learn More About Flexible Learning Paths10m

Updating Your Profile10m

Getting to Know Your Classmates10m

Module 1 Overview10m

5 practice exercises

Orientation Quiz30m

Lesson 1.2 Practice Quiz5m

Lesson 1.3 Practice Quiz5m

Lesson 1.4 Practice Quiz5m

Overview of M&A Topics and Evidence Quiz30m

Week

Week 2

4 hours to complete

Module 2: Company Valuation

What determines a company’s stock price? Placing a value on companies is a key tool for M&A analysis. This module focuses on the main methods available to estimate stock prices, including discounted cash flow valuation and multiples-based valuation. You will learn these tools using the most up-to-date Finance theory, and real-world examples.

4 hours to complete

12 videos (Total 150 min), 1 reading, 5 quizzes

12 videos

Module 2 Objectives and Overview5m

Forecasting Profits and Investments15m

Free Cash Flows18m

Using Returns to Measure Risk12m

The Capital Asset Pricing Model (CAPM)11m

The Weighted Average Cost of Capital (WACC)6m

Improving Your Estimate of the Expected Return on Debt14m

Improving Your Estimate of the Expected Return on Equity18m

Computing Enterprise Value and Stock Prices8m

Using Comparables for Valuation20m

Sensitivity Analysis15m

Module 2 Review2m

1 reading

Module 2 Overview10m

5 practice exercises

Lesson 2.2 Practice Quiz10m

Lesson 2.3 Practice Quiz10m

Lesson 2.4 Practice Quiz10m

Lesson 2.5 Practice Quiz10m

Company Valuation Quiz30m

Week

Week 3

2 hours to complete

Module 3: The Role of Target and Acquirer Valuation in M&A

Valuation analysis is a major part of the work that investment banks do when advising companies involved in M&A deals. You will learn that both target and acquirer valuation matter, and why. This module also focuses on what is special about the valuation and pricing of non-publicly traded targets. Finally, you will learn how to best use transaction multiples in the valuation of M&A deals.

2 hours to complete

7 videos (Total 69 min), 1 reading, 3 quizzes

Week

Week 4

7 hours to complete

Module 4: Synergies and Hostile Takeovers

This module starts with how to place a value on synergies using cash flow forecasts provided by management, and also using the stock market reaction to a new M&A deal. Next, you will also learn how to relate synergies to the premium paid for targets and how to calculate the NPV (net present value) of a deal. You will also learn the specifics of hostile takeover deals with a focus on governance, legal, and valuation issues.

7 hours to complete

11 videos (Total 162 min), 2 readings, 4 quizzes

11 videos

Module 4 Objectives and Overview7m

Synergy Valuation: Management Perspective14m

Synergy Valuation: The Market's View17m

The Chance of Deal Failure and Merger Arbitrage13m

Additional Examples: When Markets and Managers Disagree15m

Bidder Strategies14m

Target Strategies21m

Do Takeover Defenses Create or Destroy Value?11m

Examples of Hostile Deals21m

Module 4 Review3m

Honors Assignment Details and Sample Solution21m

2 readings

Module 4 Overview10m

Honors Assignment Information10m

3 practice exercises

Lesson 4.2 Practice Quiz10m

Lesson 4.3 Practice Quiz10m

Synergies and Hostile Takeovers Quiz30m

29 minutes to complete

Course Conclusion

29 minutes to complete

2 videos (Total 9 min), 2 readings

Reviews

4.9

8 reviews

5 stars
90.90%
4 stars
9.09%

TOP REVIEWS FROM FINANCE OF MERGERS AND ACQUISITIONS: VALUATION AND PRICING

by GSMay 21, 2022

Professor Almeida makes topics easy to understand and it is a pleasure to learn from him.

Material, class, quizes, case studies and examples support well the learning.

by MMMar 19, 2022

A very systematic course with great examples and practice !

View all reviews

Frequently Asked Questions

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The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.
What will I get if I purchase the Certificate?
When you purchase a Certificate you get access to all course materials, including graded assignments. Upon completing the course, your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
Is financial aid available?
Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

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Finance of Mergers and Acquisitions: Valuation and Pricing

Finance of Mergers and Acquisitions: Valuation and Pricing

About this Course