Course Syllabus
The syllabuses on both this page and the NTU online course information are synchronized.
Course Information
| Item | Content |
| Course title | Managing Global Acquisitions and Restructuring |
| Semester | 112-2 |
| Designated for |
GRADUATE INSTITUTE OF INTERNATIONAL BUSINESS DEPARTMENT OF INTERNATIONAL BUSINESS |
| Instructor | HONG-JEN CHIU |
| Curriculum No. | IB 5063 |
| Curriculum Id No. | 724 U1670 |
| Class | |
| Credit | 3 |
| Full/Half Yr. | Half |
| Required/Elective | Elective |
| Time | Tuesday 7,8,9(14:20~17:20) |
| Place | 管二102 |
| Remarks |
Course Syllabus
| Item | Content |
| Course Description | It seemed to be a logical combination between the GPU and CPU platform in the Nvidia-ARM deal, but why it turned out to be a flop? After the failed attempt, ARM is filing for an IPO in the USA, while Nvidia is riding on the ChatGPT-driven AI boom in 2023. The SPAC (Special Purpose Acquisition Vehicle) has emerged as a powerful and efficient fund raising tool during the Covid-19 Pandemic since 2020. Taiwan-based Gogoro was merged into a SPAC in 2021, when the SPAC has become a popular alternative to fund the mergers and acquisitions (M&A). In contrast, Taiwan-based GlobalWafer failed to complete its acquisiton of Germany-based of Siltronic in Feb. 2022 due to regulatory rejection form Germany. The international M& A and leveraged buyout (LBO) have gained their momentum from loose-credit financing and industry consolidation pressure. Since the outbreak of coronavirus in early 2020, LVMH faced difficulty in completing the Tiffany acquisition announced in November 2019. In addition, amid the US-China increasing fights over trade and technology, the proposed deal of China-based TikTok and potential U.S. buyers by September 1, 2021, fell apart under institutional pressure from both sides. Industry consolidation has also picked up its momentum in several technology-driven industries. For instance, one year after the acquisition of private equity firm-owned Freescale Semiconductor, US-based Qualcomm announced its takeover offer to Dutch-based NXP Semiconductor in 2016. Soon after the acceptance of NXP’s shareholders, Singapore-based Broadcom made a hostile takeover attempt for the new Qualcomm. Trump Administration quickly rejected this M&A filing due to the “national security concern” on the foreign acquirer. Similarly, to retaliate trade war launched by the US, China’s regulatory bodies refused the Qualcomm-NXP filing for the post-merger operational integration in China. Corporate restructuring may be undertaken alone (e.g., eBay’s spinoff of PayPal, or Google’s organizational restructuring into Alphabet Holdings), or can lay the groundwork for follow-on M&A or LBO (e.g., Dow Chemical merged with Du Pont). The strategic roles of the private equity fund and hedge fund become more important for facilitating either restructuring or M&A. To start a career in related professions -- e.g., investment banker and buyout specialist -- you need to get familiar with domain knowledge and to keep abreast of contemporary global M&A and restructuring events. This pedagogical vision motivated this course. |
| Course Objective | The purpose of this course is to teach relevant domain knowledge of the acquiring firms for pursuing synergistic or undervalued targets worldwide. Before or after M&A, asset restructuring can be a must to achieve strategic renewal and organizational reinvention for legitimacy and profitability. For instance, to fully understand the motivation, processes, and likely consequences of US-based Citigroup's exits from 13 emerging economies -- including Taiwan -- announced in 2Q 2021, you may benefit from your participation in class discussions. I have taught @ NTU for 30 years and have accumulated 17-year professional experiences in global M&A and corporate restructuring. You can count on me! In addition, effective integration of merged firms and then restructuring non-core assets also contribute to the success of post-merger growth and operations. Thus, to profit from the events of global M&A and restructuring -- i.e., Taiwan-based UMC's group restructuring for IC foundry, as well as Hon-Hai's acquisition of Japan-based Sharp and its newly-announced MIH Alliance -- you can learn and be inspired from our innovative learning process and platform. |
| Course Requirement | This is an inter-disciplinary course that lays its groundwork on entry-level courses in management, finance, and organization. Thus, basic knowledge in these subjects (or equivalent), though NOT regarded as pre-requisites, contribute to effective learning. Nevertheless, to make this course accessible to everyone interested in M&A and corporate restructuring-related career -- i.e., the private equity fund manager, buyout specialist, investment banker, strategy consultant, and angel investor, venture capitalist -- the instructor has simplified the learning process and valuation measures. Thus, don't worry, be happy! You can expect to learn timely professional knowledge and experience in global M&A and corporate restructuring. The instructor commits to enhance your understandings of strategic thinking, decision-making framework, corporate valuation alternatives, and restructuring/integration action programs that are “working surely”. |
| Student Workload (expected study time outside of class per week) | Two hours per week |
| References | Harvard Business Review, Bain & Co. M&A Report, McKinsey's Quarterly |
| Designated Reading | All available on the course website |
Progress
| Week | Date | Topic |
| Week 0 | See the Class Schedule in the Modules section. |
Grading
| NO | Item | Pc | Explanations for the conditions |
| 1 | Individual Class Participation and Disucssions | 30% | The grading for your participation for class discussions will be recognized as the “sticker-awarding” system. The total number of stickers collected in every class will be counted toward your contributions to class discussions. To get a highest grade (A+) on this part, you are expected to get at least 10 stickers. The number of stickers your receive will serve the basis for your participation grade, such as More than 10 stickers A + 9 -10 stickers A 7 - 8 stickers A - 5 - 6 stickers B + 3 - 4 stickers B 1 – 2 stickers B- 0 sticker C |
| 2 | Group Case Study Report and Oral Presentation | 30% | You may form a TWO-FOUR person group for studying the case assigned by the instrutor. A set of disucssion questions (DQs) are provided in the Modules section. Nevertheless, you may choose your own way of analyzing the case and organize your arguments in ppt (for oral presentation) and then in word-formated report. The length of the text of your report will be 2500 words or so. |
| 3 | Group Term Project Report and Presentation | 40% | Each study group should choose a firm or an industry to write ONE term project that aims at addressing issues related to global M&A and/or restructuring -- covered and discussed in our class lectures and discussions -- at the firm- or industry-level. Then, each group is expected to make ONE in-class/online oral presentation. The choice of the focal firm/industry for your term project is at your group members’ collective discretion. The max length of the term project is about 20 pages in Word-format, with 12-font letter size. The structure of the term project should include the following: (1) One-page Executive Summary; (2) Clarify strategic issues on global M&A and/or restructuring for such issues; (3) Describe such M&A and/or restructuring events (max. 2 pages); (4) Apply the analytical tools, frameworks, and concepts that you have learned from this MGAR course to analyze the drivers or factors behind these issues, and propose likely alternatives for M&A and/or restructuring strategies (min. 4 pages); (5) Compare and contrast the advantages and disadvantages of these alternatives, and prioritize them in terms of feasibility for implementation (min. 2 pages); (6) Recommend the choice of new strategic directions and implementation action programs, in response to the issues specified in (2). |
Adjustment methods for students
| Adjustment method | |
| Teaching methods | Provide students with flexible ways of attending courses |
| Assignment submission methods | Extension of the deadline for submitting assignments |
| Exam methods | Written (oral) reports replace exams |
| Others | Negotiated by both teachers and students |
Office Hour
| Remarks | Office hours will be on the 9 - 11 am every Wednesday. Extra hours are available by appointment. |