FIN 688 Mergers, Acquisitions and Corporate Restructuring

Course Catalog Description


Finance is the bedrock of the profit-making organization! This course develops the “architecture and science” of optimal strategic decision-making by building upon the basic corporate financial theory to cases of financial policies like initial public offering, debt issuance, seasoned equity offers. This course analyzes investments decisions like merger and acquisition, and divestitures decisions like spinoffs and carve-outs. corporate bankruptcy and restructuring, and other advanced models of corporate valuation. The classes are structured to maximize the synergy between advanced topics in corporate finance theory and case-based practical applications, providing students with portable, durable and marketable tools for their careers. This class is suitable for students looking to make executive strategic financial decisions, including investment bankers, consultants, CFOs and corporate treasurers, portfolio and investment managers,and students seeking careers in private equity.

Prerequisites: FIN 638: Corporate Finance, AND FIN 616: Managerial Economics, OR FIN 510:Financial Statement Analysis, OR FIN 628: Derivatives Or by instructor’s consent

Course Objective

The more advanced tools and deeper understanding of the valuation process in this course serve the same goal stated in the introductory corporate finance – to improve corporate financial decision-making by executives and to provide value-creating tools of analysis for investors. For example,

  1. The course introduces more advanced concepts into valuation (such as corporate securities beyond simple debt and equity) to equip students with the tools necessary to analyze more complex (and therefore, more realistic) capital structures and corporate transactions.
  2. The course incorporates richer institutional detail into quantitative analysis, bringing students closer to real world.
  3. The course explores new topics and recent developments in corporate finance theory and practice as a means of exposing students to the ever-changing nature of the capital markets, both its terms and its practices.

Campus Fall Spring Summer
On Campus X X
Web Campus X X


Associate Professor Email Office
Suman Banerjee Babbio Center Room: 638

More Information

Course Outcomes

After successfully completing this course in Corporate Finance, the student should have improved competencies in the following areas of:

  1. Evaluate the theoretical and applied research in the areas of mergers & acquisitions, public offerings, corporate carve-outs, and spinoffs
  2. Understand the implications of corporate bankruptcy and restructuring on stakeholders’ wealth
  3. Compare various models of investment/divestiture decisions making under uncertainty
  4. Identify legal aspects of corporate investments/divestiture decisions and the implications of legal risk on stakeholders’ wealth
  5. Utilize ethical frameworks to analyze organizational decision-making as it relates to finance

Course Resources


  • Corporate Finance The Core by Jonathan Berk & Peter DeMarzo,4th Edition
  • Corporate Finance by Stephen A. Ross, Randolph W. Westerfield, Jeffrey Jaffe (RWJ). Book is published by McGraw-Hill College, 10th Edition.


Grading Policies

1 Class Participation 10%
2 In-class quizzes 15%
3 In-class case analysis, write-up & presentation 25%
4 Midterm exam 20%
5 Take-home final exam (case analysis) 30%

Lecture Outline

Topic Reading(s) Homework
Week 1 Introduction and Overview
Week 2 Cost of Capital, Capital Budgeting & DCF Valuation BD Chaps 8, 9 & 12 End of Chapter Problems
Week 3 DCF Valuation, E.I. du Pont de Nemours and Co.:Titanium Dioxide HBR Case# 9-326-004 Pre-class case Reading
Week 4 Payout Dividends, General Dynamics: Compensation and Strategy HBR Case# 9-106-932 Pre-class case Reading
Week 5 Payout Buybacks: Walgreen Company, The Cash Distribution Decision BD Chap 18 End of Chapter Problems
Week 6 IPO: Don't Be Evil, Google's 2004 Dutch Auction Initial Public Offering HBR Case# 9-291-028 End of Chapter Problems
Week 7 Midterm Exam
Week 8 Lecture on Option Pricing Theory and Corporate Applications BD Chap 22 End of Chapter Problems
Week 9 Case: Chrysler's Warrants HBR Case# 9-217-324 Pre-class case Reading
Week 10 Lecture on Corporate Control RWJ, Notes End of Chapter Problems
Week 11 Case: Paramount Communications Inc.- 1993 HBR Case# 9-293-092 Pre-class case Reading
Week 12 Lecture on Merger & Acquisition BD Chap 24 End of Chapter Problems
Week 13 Meet the Fantastic Four: Disney's 2009 Acquisition of Marvel HBR Case# 9-298-068 Pre-class case Reading
Week 14 Restructuring: Bankruptcy and Restructuring at Marvel Entertainment Group HBR Case# 9-210-037 Pre-class case Reading