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Finance of Mergers and Acquisitions: Designing an M&A Deal

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Finance of Mergers and Acquisitions: Designing an M&A Deal

This course is part of Mergers and Acquisitions Specialization

Instructor: Heitor Almeida

15,414 already enrolled

Included with

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5 modules

Gain insight into a topic and learn the fundamentals.

67 reviews

Intermediate level

Some related experience required

Flexible schedule

2 weeks at 10 hours a week

Learn at your own pace

Build toward a degree

Learn more

5 modules

Gain insight into a topic and learn the fundamentals.

67 reviews

Intermediate level

Some related experience required

Flexible schedule

2 weeks at 10 hours a week

Learn at your own pace

Build toward a degree

Learn more

What you'll learn

Evaluate the impact of an M&A deal on financial statements.
Incorporate the effect of large changes in leverage in the cost of capital and stock price.
Determine the optimal financing mix for an M&A deal.
Estimate the impact of an M&A deal on a company’s capital structure.

Skills you'll gain

Details to know

Shareable certificate

Add to your LinkedIn profile

Assessments

16 assignments

Taught in English

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This course is part of the Mergers and Acquisitions Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

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Gain a foundational understanding of a subject or tool
Develop job-relevant skills with hands-on projects
Earn a shareable career certificate

There are 5 modules in this course

This course focuses on the theory and practice of mergers and acquisitions (M&A), with a focus on the Finance. The Finance of M&A uses tools from different areas of Finance to help managers and investment bankers design successful M&A deals. In particular, we will learn to value and price M&A deals and how 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 spinoffs and asset transfers.

The course will benefit any student who desires to increase their ability to understand and execute M&A deals, including (but not limited to), entrepreneurs, consultants, bankers, investors, analysts, corporate managers, marketers, strategists, and deal-makers of all types. The course will also deepen students’ understanding of financial modeling and capital structure, both in theory and practice.

Module details

You will learn the basic accounting and taxation principles of M&A deals, and how accounting and taxation choices interact and potential implications for M&A financing decisions. This module will also discuss the key trade-offs that acquirers and targets face when deciding between cash and stock deals, including taxes, valuation issues and uncertainty about synergies.

What's included

13 videos6 readings6 assignments1 plugin

13 videosTotal 151 minutes

Course Introduction8 minutes
Meet Professor Almeida6 minutes
Learn on Your Terms1 minute
Module 1 Objectives and Overview8 minutes
Accounting for a Stock Deal14 minutes
Accounting for a Cash Deal10 minutes
Real World Example of M&A Accounting25 minutes
An Introduction to Taxation of M&A Deals10 minutes
Cash or Stock? The Mechanics13 minutes
Cash or Stock? Taxes, Signaling, and Ownership Structure12 minutes
Cash or Stock? Uncertainty About Synergies and Valuation19 minutes
Cash or Stock? Real World Example21 minutes
Module 1 Review3 minutes

6 readingsTotal 60 minutes

Syllabus10 minutes
About the Discussion Forums10 minutes
Online Education at Gies College of Business10 minutes
Getting to Know Your Classmates10 minutes
Updating Your Profile10 minutes
Module 1 Overview10 minutes

6 assignmentsTotal 95 minutes

Orientation Quiz30 minutes
Lesson 1.2 Practice Quiz10 minutes
Lesson 1.3 Practice Quiz10 minutes
Lesson 1.4 Practice Quiz10 minutes
Lesson 1.5 Practice Quiz5 minutes
Designing an M&A Deal: Accounting, Taxation, and Means of Payment Quiz30 minutes

1 pluginTotal 15 minutes

Welcome! Please Tell Us About Yourself15 minutes

M&A deals can cause significant changes in corporate leverage. In this module you will learn how leverage affects company value both in theory and in practice. You will also learn how to choose the optimal financing mix in an M&A deal, using the trade-off model of capital structure and other state-of-the art tools including credit ratings and debt structure.

What's included

10 videos1 reading3 assignments

10 videosTotal 168 minutes

Module 2 Objectives and Overview8 minutes
Using the WACC Model (or Not)19 minutes
An Alternative: Adjusted Present Value19 minutes
The Trade-off Model of Capital Structure in Practice23 minutes
Real World Example18 minutes
Equity Issuance in M&A Financing14 minutes
Targeting Credit Ratings18 minutes
Managing High Leverage in M&A Deals29 minutes
Real World Example17 minutes
Module 2 Review4 minutes

1 readingTotal 10 minutes

Module 2 Overview10 minutes

3 assignmentsTotal 70 minutes

Lesson 2.2 Practice Quiz20 minutes
Lesson 2.3 Practice Quiz20 minutes
Financing M&A Deals Quiz30 minutes

Private equity deals have become an essential component of the M&A market and studying private equity deals is an excellent learning tool for an M&A practitioner. You will learn the Finance issues that are essential to private equity deals including highly leveraged valuation, complex financing structures, and the key sources of value creation. You will also learn the complete modeling of a leverage buyout (LBO), including valuation, financing, exit plans and calculation of IRR (internal rates of return).

What's included

10 videos1 reading5 assignments

10 videosTotal 170 minutes

Module 3 Objectives and Overview6 minutes
What is Special About LBOs?22 minutes
What Drives LBOs?17 minutes
Dealing With High Leverage18 minutes
Numerical Example22 minutes
LBO Model: Undervaluation19 minutes
Post-LBO Valuation15 minutes
Calculating and Using IRR22 minutes
Other Types of LBOs25 minutes
Module 3 Review4 minutes

1 readingTotal 10 minutes

Module 3 Overview10 minutes

5 assignmentsTotal 80 minutes

Lesson 3.2 Practice Quiz10 minutes
Lesson 3.3 Practice Quiz15 minutes
Lesson 3.4 Practice Quiz5 minutes
Lesson 3.5 Practice Quiz20 minutes
Private Equity and Leveraged Buyouts Quiz30 minutes

Companies create value not only by buying assets but also by selling assets and downsizing. You will learn how and why companies can create value by breaking up. This module will also discuss the specifics of divestitures and spin-offs, including tax implications and the benefits of corporate focus.

What's included

7 videos2 readings2 assignments1 peer review

7 videosTotal 100 minutes

Module 4 Objectives and Overview2 minutes
Why Break Up?13 minutes
Asset Sales16 minutes
Spinoffs17 minutes
Real World Example16 minutes
Module 4 Review2 minutes
Honors Assignment Details and Sample Solution32 minutes

2 readingsTotal 20 minutes

Module 4 Overview10 minutes
Honors Assignment Information10 minutes

2 assignmentsTotal 60 minutes

Lesson 4.2 Practice Quiz45 minutes
Corporate Restructuring: Divestitures and Spinoffs Quiz15 minutes

1 peer reviewTotal 180 minutes

Honors Assignment180 minutes

What's included

1 video2 readings1 plugin

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Build toward a degree

This course is part of the following degree program(s) offered by University of Illinois Urbana-Champaign. If you are admitted and enroll, your completed coursework may count toward your degree learning and your progress can transfer with you.¹

Instructor

Instructor ratings

(20 ratings)

Heitor Almeida

University of Illinois Urbana-Champaign

5 Courses120,302 learners

Offered by

University of Illinois Urbana-Champaign

Learner reviews

5 stars
83.58%
4 stars
10.44%
3 stars
0%
2 stars
1.49%
1 star
4.47%

Showing 3 of 67

Reviewed on Apr 27, 2022

The course covers the hard and soft aspects in detail that are involved in M&A in structured manner. It was amazing learning them, heading for subsequent courses offered in this series.

Reviewed on Oct 23, 2025

Great teacher. A good course with excellent questions that highlights a key nuance in investment analysis.

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