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Technical

Financial and Strategic Implications of Mergers and Acquisitions Logo cgma

  Kaplan Publishing Limited |   $55.00 - 65.00 |   CPE: 2.5 |   AICPA |   Feb 2015 |   Finance |   AICPA Store

This CPE course is included in the 50+ hours of CGMA Strategic Management Accounting. It can also be purchased individually or as a part of Corporate Financial Strategy.

This CPE course classifies mergers and acquisitions and explores reasons why entities merge or acquire. It defines Big Data, synergy, and the impact of mergers and acquisitions on stakeholders. It examines tax implications, the role and scope of competition authorities, and methods of divestment. The course also investigates how management can purchase a business from its existing owners, and studies exit strategies. It focuses on practical matters such as what form of consideration should be used in an acquisition (for example, cash or a share exchange) and the negotiation process that surrounds a bid. It explores types of defenses against hostile bids, and how to derive entity values using the bootstrapping method. It considers the target entity’s debt issues, and concludes with investigating the post-merger or post-acquisition process.

Topics Discussed

  • Recognition of the interests of different stakeholder groups
  • Reasons for and against acquisitions, mergers and divestments
  • Taxation implications
  • Process and implications of a management buy-out, including potential conflicts of interest
  • Role/function/implications of acquisition by private equity or venture capitalist
  • Role and scope of competition authorities in relation to mergers and acquisitions
  • Forms of consideration and terms for acquisitions (e.g. cash, shares, and convertibles), and their impact on shareholders, including taxation impact
  • Treatment of target entity debt (settlement, refinancing)
  • Methods and implications of financing a cash offer and refinancing target entity debt
  • Bid negotiation (e.g. managing a hostile bid) including agency issues
  • Potential post-transaction value for both acquirer and seller (e.g. taking into account synergistic benefits, forecast performance and market response)
  • Integration of management/systems and effective realization of synergistic benefits
  • Types of exit strategies and their implications

Learning Objectives

When you complete this course, you will be able to:

  • Identify reasons for and against acquisitions, mergers and divestments (e.g. strategic position, synergistic benefits, big data opportunities, risks and tax implications)
  • Recognize the interests of different stakeholder groups
  • Recognize taxation implications (group loss relief, differences in taxation rates, withholding tax, double tax treaties)
  • Recognize the process and implications of a management buy-out, including potential conflicts of interest
  • Recognize the function of acquisition by private equity or venture capitalist
  • Identify the role of competition authorities in relation to mergers and acquisitions
  • Select the appropriate form of consideration and terms for acquisitions (e.g. cash, shares,and convertibles), and recognize their impact on shareholders, including taxation impact
  • Calculate an appropriate bid price, including identifying the methods and implications of financing a cash offer and refinancing target entity debt
  • Identify key defenses in hostile takeovers
  • Calculate the potential post-transaction value for both acquirer and seller (e.g. taking into account synergistic benefits, forecast performance and market response)

Who Will Benefit?

  • CGMA exam candidates
  • Management accountants wanting to develop skills in corporate financial strategy

DISCOUNTS

CGMA designation holders qualify for additional discounts on this product.

In order to receive your special pricing, you must be registered and signed in. View the complete list of development products available on CGMA.org.

Topics covered:
  • Management accounting: CGMA exam preparation: CPA pathway to CGMA, Intermediate
  • Management accounting: Technical: Corporate finance & treasury management: Mergers & acquisitions, Intermediate
  • Forensic & valuation services: Technical: Mergers & acquisitions, Intermediate
Who Will Benefit?
  • CGMA exam candidates
  • Management accountants wanting to develop skills in corporate financial strategy
Topics Discussed
  • Recognition of the interests of different stakeholder groups
  • Reasons for and against acquisitions, mergers and divestments
  • Taxation implications
  • Process and implications of a management buy-out, including potential conflicts of interest
  • Role/function/implications of acquisition by private equity or venture capitalist
  • Role and scope of competition authorities in relation to mergers and acquisitions
  • Forms of consideration and terms for acquisitions (e.g. cash, shares, and convertibles), and their impact on shareholders, including taxation impact
  • Treatment of target entity debt (settlement, refinancing)
  • Methods and implications of financing a cash offer and refinancing target entity debt
  • Bid negotiation (e.g. managing a hostile bid) including agency issues
  • Potential post-transaction value for both acquirer and seller (e.g. taking into account synergistic benefits, forecast performance and market response)
  • Integration of management/systems and effective realization of synergistic benefits
  • Types of exit strategies and their implications
Learning Objectives

When you complete this course, you will be able to:

  • Identify reasons for and against acquisitions, mergers and divestments (e.g. strategic position, synergistic benefits, big data opportunities, risks and tax implications)
  • Recognize the interests of different stakeholder groups
  • Recognize taxation implications (group loss relief, differences in taxation rates, withholding tax, double tax treaties)
  • Recognize the process and implications of a management buy-out, including potential conflicts of interest
  • Recognize the function of acquisition by private equity or venture capitalist
  • Identify the role of competition authorities in relation to mergers and acquisitions
  • Select the appropriate form of consideration and terms for acquisitions (e.g. cash, shares,and convertibles), and recognize their impact on shareholders, including taxation impact
  • Calculate an appropriate bid price, including identifying the methods and implications of financing a cash offer and refinancing target entity debt
  • Identify key defenses in hostile takeovers
  • Calculate the potential post-transaction value for both acquirer and seller (e.g. taking into account synergistic benefits, forecast performance and market response)

This CPE course is included in the 50+ hours of CGMA Strategic Management Accounting. It can also be purchased individually or as a part of Corporate Financial Strategy.

This CPE course classifies mergers and acquisitions and explores reasons why entities merge or acquire. It defines Big Data, synergy, and the impact of mergers and acquisitions on stakeholders. It examines tax implications, the role and scope of competition authorities, and methods of divestment. The course also investigates how management can purchase a business from its existing owners, and studies exit strategies. It focuses on practical matters such as what form of consideration should be used in an acquisition (for example, cash or a share exchange) and the negotiation process that surrounds a bid. It explores types of defenses against hostile bids, and how to derive entity values using the bootstrapping method. It considers the target entity’s debt issues, and concludes with investigating the post-merger or post-acquisition process.

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