The purpose of this module is to learn how to get from the valuation of a company to the actual deal (e.g., acquisition, financing round). This is the topic of financial deal making. The module shows how to use relatively simple finance tools to bridge valuation gaps and bring buyers and sellers together. It discusses the basic principles of financial deal making and shows the main elements of a typical deal structure. The terms of financial deals are usually summarized in the term sheet. We learn how to read or draft such term sheets, what the individual clauses actually mean, and how these clauses determine the allocation of returnscontrol, and liquidity among the parties of the deal. 

Mergers and Acquisitions (M&A) have tremendous economic relevance and constitute a crucial mechanism in an economy's reallocation of resources. This course focuses on important financial aspects of M&A transactions. After discussing the various forms of takeover, we present the standard M&A process and the valuation challenges that are associated with that process, in particular with respect to the anticipated net synergies of the deal. Then we study the key considerations of how to set the offer price and its composition (e.g., cash vs. stock deals). We look at how the deal structure affects the risk- and value allocation among the parties, and we close with a discussion of why creating value with M&A is easier said than done