As organizations seek to remain relevant in the current VUCA environment, the importance of M&A and restructuring as vehicles for organizational repositioning has only increased. While traditional industries see M&A as a means of individual survival and growth in a slow-growth, but highly competitive environment, M&A is pursued with equal vigour in the vibrant technology industries as a means to access the latest and emerging technologies. M&A is accepted as almost inevitable as companies pursue global scale and scope. The multi-billion dollar Vodafone India-Idea merger announced in August 2018 is a strategic response to the tectonic changes seen in the Indian telecom landscape. The global scale and sweep of M&A is humongous – annual global M&A announcements indicating strategic intent are worth several trillion dollars, higher than the GDPs of all but a handful of countries.
Despite its immense popularity, M&As carry huge execution risks – attested by the fact that the success rate in M&A is just about 20%-30%. Yet there are organisations that have developed a habit of acquiring successfully and creating value consistently. Indian companies like elsewhere have demonstrated mixed results. While a company such as Sun Pharma had grown to become a USD 30b-value company primarily through decades-long effective M&A strategies, the Ranbaxy merger of 2015 – its largest transaction to-date – only underscores the risks, even for the experienced. Dozens of Indian companies across different sizes, industries and management stables have also come to grief from ill-advised, debt-financed cross-border deals necessitating further restructuring. Yet avoiding M&A as a strategic choice may not be an option for long; rather learning to effectively manage the same becomes the way forward.
In the IIMA's Mergers, Acquisitions and Restructuring (MA&R) programme, the participants will be exposed to the perspectives and skillsets required for effective management of the MA&R process. Through a series of real-life and exciting case studies, the participants will get a “handle” on the entire MA&R value chain from planning through deal execution to the post-transaction phases. The programme will thus deal with the key issues, viz., the strategic rationale and business case, key value drivers, target identification and evaluation in terms of strategic, financial and cultural fits, regulatory and deal structuring issues.
The learning experience will be intense with the pedagogy consisting of case analysis, faculty-led and peer-to-peer discussions and group work. The participants will explore a wide range of acquisition and restructuring situations to develop a fair understanding of value creation through mergers, acquisitions and restructuring.
The programme will discuss the entire gamut of MAR themes and sub-themes and topics as follows:
• “What”? The different types of corporate restructuring transactions, viz., business combination transactions such as mergers and acquisitions and break- up transactions such as demergers or spin-offs and divestitures. Takeaways also include the various players in the M&A field and their roles.
• “Why”? The motives for and drivers of M&A and restructuring activities such as value creation, preservation and sustenance through various
strategic initiatives. These include product and/or market expansion and/or diversification, capturing of synergies, etc.
• “When”? At what stage in an industry's or organisation's life cycle would the pursuit of these specific strategies be appropriate?
• “How-1?” The key elements in the M&A value chain, viz., pre-acquisition planning, deal execution including valuation and financing, post-acquisition
integration and management, regulatory aspects and deal structuring.
• “How-2?” Regulatory aspects and deal structuring. This module explores creativity in deal structuring and examines key relevant aspects of takeover and
company law regulations, tax issues and the new Insolvency and Bankruptcy Code.
• “How Not”? What can go wrong in M&A and how to avoid/mitigate the common pitfalls.
This programme is designed for top management personnel responsible for charting company growth strategies and senior executives with an identified role
in strategy formulation and implementation, business development and finance. The target participants may have business unit, corporate or group level