Modulhandbuch (Module manual)

In order to take this course successfully, students should know:

English
Basics of bookkeeping and financial accounting (preferably under International Financial Reporting Standards), e.g. 

M.184.2227 (FA 1: Grundlagen des externen Rechnungswesens nach HGB)

M.184.2228 (FA 2: Weiterführende Grundlagen des externen Rechnungswesens nach HGB)

M.184.2267 (FA 3: Introduction to international financial reporting)

M.184.2268 (FA 4: Intermediate international financial reporting)

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The module is conducted as a weekly lecture including integrated case studies and gives participants an overview of processes that a firm undertakes when engaging in mergers, acquisitions and divestures. In today's competitive environment, this is a common way to adjust a business that requires consideration of various aspects and taking of different decisions.

The focus on the module lies on key aspects of valuation, accounting and taxation. It builds the process of mergers, acquisitions and divestures on a case of a typical company. The first step of the process is target identification. After potential targets are identified the firm decides whether to proceed with business expansion (e.g., asset deals, share deals, full acquisitions (business combinations)). Since business divestures are also an important part of such deals the module introduces, e.g., spin offs as well. Students get familiar with the procedures and management decisions accompanying each of the steps, e.g. due diligence, tax considerations, financing decisions, valuation procedures and appropriate accounting treatments. Specific concepts related to these procedures are practiced in case studies throughout the module. For example, in case of acquiring a new business the firm has to apply consolidation accounting and perform purchase price allocation procedures. Students will therefore learn how to apply IFRS 3 and IFRS 10 for consolidation accounting.​