Proposal
I am writing to seek funding approval to integrate a M&A simulation into my [course/program].
As we strive to continuously improve our curriculum and keep up with industry trends, I believe that incorporating the simulation will provide a significant advantage to our students and increase their chances of success in their future careers.
While our current course offerings are effective, we are always looking for new and innovative ways to engage our students and equip them with the skills and knowledge necessary to thrive in the highly competitive job market. The use of simulation has been proven to enhance student engagement and improve their retention of complex concepts, as they are able to apply what they learn in a realistic and interactive setting.
In addition, by incorporating the simulation into our [course/program], we can ensure that our students are well-prepared for the challenges of the industry, including rapid technological advancements and changing market conditions. This will give them a competitive edge in the job market and make them highly sought after by top employers.
Furthermore, AASCB, EQUIS, and AMBA encourage the use of practical simulations.
In summary, this simulation will benefit our students and our institution. I am confident it will enhance our reputation for innovative teaching methods and result in improved educational outcomes.
Provider
Finsimco is a software provider specializing in gamified training simulations for investment banks. The company was founded by former investment bankers with origins at Morgan Stanley. For more information, visit www.finsimco.com
Benefits
- Real world experience: It is often difficult for students to fully comprehend finance theory without relevant work experience. Even after years of industry experience, certain scenarios may remain uncommon (e.g. exogenous shocks). For several years, financial service providers have utilized Finsimco simulations to expose staff and new recruits to these types of challenging situations. The simulations enable students to experience real-life settings without taking on any risks.
- Employability: The Simulator offers a realistic work experience. Similar simulations are used in recruitment and training events. Our students would be exposed to a similar environment, which should improve their prospects.
- Cost reduction: The self-running nature of the simulation will reduce the teaching workload, requiring less supervision.
- Assessment: The simulation supports effective assessment of students' knowledge and skills in financial services. It provides a practical platform for evaluating performance, decision-making abilities, and industry understanding.
- Higher enrollment: Business Schools that have integrated the simulations into their curriculum have observed an increase in student applications. The positive word-of-mouth generated by students who have experienced the simulations contributes to the increased enrollment in these programs.
Key statistics
- Increased job placement: Finance majors who complete Finsimco simulations are 1.7 times more likely to secure jobs at Bulge Bracket Banks.
- Excellent ratings: 93% of participants rate the simulator experience as "excellent."
- Certification: Upon successful completion, participants will receive a certificate recognized by most banks.
Review
I will review the simulation annually, aligning it with our teaching-focused processes. As part of the review, I will consider enrollment numbers, student feedback, and employability-enhancing metrics.
M&A simulation
Url: https://www.finsimco.com/business-schools/simulations/m-and-a
Duration: 1 hour.
Setup:
- Students are organized into teams, each consisting of 2 to 3 members.
- Teams manage an acquisition by assuming the roles of a buyer and a seller.
- The difficulty level of the simulation adjusts based on performance.
Grading: Assessment is based on the teams' ability to reach an agreement, as well as the practicality and favorability of the terms they agree upon.
Concepts:
- M&A Strategic Rationale (Synergies, Diversification, Growth, etc.)
- Valuation
- Deal Financing Options (e.g. cash vs stock)
- Due Diligence in M&A
- Negotiation Strategies in M&A
Learning Objectives:
- Understand the strategic motives behind M&A transactions.
- Apply basic valuation methods to determine a fair price of a target company.
- Assess the financial and operational impacts of M&A.
- Conduct due diligence to uncover potential risks and validate assumptions.
- Develop negotiation tactics and strategies to maximize value in an M&A deal.
- Understand the importance of deal structuring in achieving favorable outcomes.
- Develop skills in managing deal negotiations.
- Identify and addressing potential deal breakers and resolving conflicts during negotiations.
- Learn effective communication techniques to convey deal terms and negotiate with counterparties.
- Recognize the challenges and best practices of integrating two companies post-acquisition.
