{"id":24376,"date":"2025-11-21T07:22:17","date_gmt":"2025-11-21T07:22:17","guid":{"rendered":"https:\/\/feb.unair.ac.id\/?p=24376"},"modified":"2025-11-25T07:27:33","modified_gmt":"2025-11-25T07:27:33","slug":"guest-lecture-series-12-merger-acquisition-orchestrating-synergies-and-value-creation","status":"publish","type":"post","link":"https:\/\/feb.unair.ac.id\/berita-feb\/guest-lecture-series-12-merger-acquisition-orchestrating-synergies-and-value-creation\/","title":{"rendered":"GUEST LECTURE SERIES #12: MERGER & ACQUISITION \u2013 ORCHESTRATING SYNERGIES AND VALUE CREATION"},"content":{"rendered":"\n
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(FEB NEWS) The Department of Accounting, Faculty of Economics and Business, Universitas Airlangga, successfully held the Guest Lecture Series #12 featuring Undral Erdenee, CMA, MBA, CPA, Lecturer at Mandakh University, Mongolia. The session, conducted on 21 November 2025, offered an in-depth exploration of mergers and acquisitions (M&A) and how organizations can strategically orchestrate synergies and create long-term value through corporate restructuring.<\/p>\n\n\n\n

This academic forum attracted participants from Universitas Airlangga and various universities across Indonesia. Students, lecturers, and early-career researchers joined the event to deepen their understanding of M&A fundamentals, valuation techniques, strategic motives, and the real-world challenges commonly encountered in corporate combinations.<\/p>\n\n\n\n

Opening and Event Context
The session was moderated by La Ode Sabaruddin, Ph.D., Lecturer at the Department of Accounting FEB UNAIR. In his introduction, he emphasized the relevance of M&A knowledge for accounting and finance students, particularly as global businesses pursue expansion strategies, operational efficiencies, and competitive advantages. He also highlighted the importance of equipping students with analytical and strategic perspectives to interpret corporate combinations in practice.
Undral Erdenee\u2019s lecture, titled \u201cMerger & Acquisition: Orchestrating Synergies and Value Creation,\u201d provided a comprehensive overview of how M&A activities shape organizational growth, market positioning, and financial performance.<\/p>\n\n\n\n

About the Speaker
Undral Erdenee holds professional designations CMA, MBA, and CPA. Her expertise spans:
\u2022 Management accounting in emerging markets
\u2022 Financial reporting
\u2022 Translation of IFRS 17 Insurance Contracts into Mongolian
\u2022 Research on ownership structure, earnings management, and financial performance
\u2022 Contributions to USAID-funded programs and authorship of cost accounting resources
Her diverse academic and professional engagements brought valuable international insights to the students of Universitas Airlangga.<\/p>\n\n\n\n

Lecture Overview: Understanding Mergers and Acquisitions<\/p>\n\n\n\n

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  1. Merger Concepts and Types
    The lecture began with foundational definitions and different types of mergers:
    \u2022 Horizontal \u2013 Firms within the same industry
    \u2022 Vertical \u2013 A firm and its supplier or customer
    \u2022 Congeneric \u2013 Related enterprises without direct competition
    \u2022 Conglomerate \u2013 Unrelated businesses combining, usually offering limited synergy
    A merger involves combining two or more companies, typically of similar size, to form a new entity.<\/li>\n\n\n\n
  2. Acquisitions
    An acquisition occurs when one company (the acquirer) purchases either:
    \u2022 A majority of the target\u2019s common shares, or
    \u2022 The entirety of its assets
    The acquirer gains control, and no new entity is formed.<\/li>\n\n\n\n
  3. Strategic Rationale for M&A
    Undral outlined two categories of motives:
    Strategic Goals
    \u2022 Market expansion
    \u2022 Economies of scale
    \u2022 Product\/service diversification
    \u2022 Eliminating competition
    \u2022 Accelerating growth
    \u2022 Synergy creation
    Financial Motives
    \u2022 Enhancing revenue streams
    \u2022 Gaining valuable assets
    \u2022 Tax optimization strategies<\/li>\n\n\n\n
  4. Challenges in M&A
    Despite potential benefits, M&A activities face significant obstacles:
    \u2022 Cultural misalignment
    \u2022 Employee resistance
    \u2022 Integration complexity
    \u2022 Overvaluation risks
    \u2022 Regulatory pressures
    \u2022 Debt burden from financing<\/li>\n\n\n\n
  5. Distinguishing Mergers and Acquisitions
    Basis Mergers Acquisitions
    Meaning Fusion to form a new company One entity purchases another
    Formation of new firm Yes No
    Purpose Reduce competition, improve efficiency Instant growth
    Relative size Similar-sized companies Acquirer larger than target<\/li>\n<\/ol>\n\n\n\n

    Case Studies Presented
    Two key case studies illustrated real-world applications:<\/p>\n\n\n\n

      \n
    1. Kraft\u2013Heinz Merger (2015)
      \u2022 Deal value: $46 billion
      \u2022 Intent: Cost synergies, operational efficiencies, economies of scale<\/li>\n\n\n\n
    2. Facebook\u2019s Acquisition of Instagram (2012)
      \u2022 Deal value: $1 billion
      \u2022 Instagram: ~30 million users at acquisition
      \u2022 Intent: Strengthening mobile presence and reaching younger demographics<\/li>\n<\/ol>\n\n\n\n

      Hostile Takeover and Defense Mechanisms
      A hostile takeover occurs when the acquirer attempts to gain control without the target\u2019s approval.
      Defense strategies discussed include:<\/p>\n\n\n\n

        \n
      1. Poison pill \u2013 share dilution<\/li>\n\n\n\n
      2. Greenmail \u2013 buying off the bidder<\/li>\n\n\n\n
      3. White knight \u2013 finding a friendly acquirer<\/li>\n\n\n\n
      4. Stock repurchase \u2013 regaining voting control<\/li>\n\n\n\n
      5. Golden parachute \u2013 executive compensation protections
        Case Study: Elon Musk\u2019s Acquisition of Twitter
        Participants examined:
        \u2022 Offer of $44 billion
        \u2022 Twitter\u2019s poison pill defense
        \u2022 Legal disputes
        \u2022 Final acquisition in 2022 and transition to X Corp
        \u2022 Operational and cultural transformation post-acquisition<\/li>\n<\/ol>\n\n\n\n

        Role of Investment Bankers in M&A
        The lecture highlighted their critical involvement:
        \u2022 Structuring deals and identifying buyers\/sellers
        \u2022 Assisting with defensive tactics
        \u2022 Conducting business valuation
        \u2022 Securing acquisition financing (including junk bonds)
        \u2022 Arbitrage and speculation in takeover targets<\/p>\n\n\n\n

        Business Valuation Techniques<\/p>\n\n\n\n

          \n
        1. Discounted Cash Flow (DCF)
          Valuing the target based on present value of future free cash flows, adjusted for risk.<\/li>\n\n\n\n
        2. Market Multiple Analysis
          Using valuation multiples such as P\/E or EBITDA from comparable firms.
          A detailed numerical illustration was provided, showing:
          \u2022 Step-by-step discounted cash flow estimation
          \u2022 Horizon value computation using the Gordon Growth Model
          \u2022 Impact of required rate of return (15% vs. 25%) on valuation outcomes<\/li>\n<\/ol>\n\n\n\n

          Divestitures
          Divestiture mechanisms were also discussed:
          \u2022 Sell-off \u2013 direct sale of subsidiary
          \u2022 Spin-off \u2013 creating a new independent company
          \u2022 Split-up \u2013 breaking the parent into several entities
          \u2022 Equity carve-out \u2013 selling a minority stake via IPO
          These provide strategic pathways for restructuring and unlocking shareholder value.<\/p>\n\n\n\n

          Q&A Session
          Participants engaged in an interactive discussion, covering topics such as:
          \u2022 The ultimate goal of M&A
          \u2022 Differences between merger types
          \u2022 Control mechanisms in acquisitions
          \u2022 Synergy concepts (e.g., \u201c2+2=5\u201d)
          \u2022 Integration challenges
          \u2022 Hostile takeover definitions
          \u2022 Valuation methods
          \u2022 Forms of divestitures<\/p>\n\n\n\n

          Acknowledgments
          The Department of Accounting expresses its sincere appreciation to Undral Erdenee for delivering a comprehensive and insightful session. Our gratitude extends to all participants whose engagement enriched the academic discussion. The organizing committee also acknowledges the support of students and faculty who contributed to the smooth execution of this program.<\/p>\n\n\n\n

          Access to Materials
          Participants who completed the attendance form may access:
          \u2022 Presentation slides
          \u2022 Session recording
          \u2022 Documentation
          \u2022 Certificate of participation<\/p>\n\n\n\n

          Materials Link:<\/p>\n\n\n\n

          https:\/\/drive.google.com\/drive\/folders\/1bCmsWgfc2WWPEKPHBlqI5a8t2d-zAXY1?usp=sharing<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

          (FEB NEWS) The Department of Accounting, Faculty of Economics and Business, Universitas Airlangga, successfully held the Guest Lecture Series #12 featuring Undral Erdenee, CMA, MBA, CPA, Lecturer at Mandakh University, Mongolia. The session, conducted on 21 November 2025, offered an in-depth exploration of mergers and acquisitions (M&A) and how organizations can strategically orchestrate synergies and […]<\/p>\n","protected":false},"author":100,"featured_media":24379,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-24376","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-berita-feb"]}