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Finance and Accounting Courses


Corporate Financial Restructuring

Introduction:

When a company needs restructuring - financial or operational - it does not mean it will do so. An erosion of Stakeholder value may occur for a variety of reasons, including Management interference. This program shows you how to do things right.

Corporate restructuring is defined as any fundamental change in a company's business or financial structure, designed to increase the company's value. Corporate restructuring is often divided into two parts: Financial restructuring or Operational restructuring. This seminar emphasizes the practical side of corporate restructuring in today’s ever-challenging world. It focuses on the two objectives of the practical application

Targeted Groups:

  • Top Management of the Corporates
  • Finance Managers
  • Finance Professionals
  • Operations Professionals
  • Persons who want to gain new knowledge and experience to improve their career

Course Objectives:

At the end of this course the participants will be able to:

  • Understand the various form of restructuring
  • Discuss the real difference between Corporate & Financial restructuring
  • Recognize when to acquire VS divest an operating unit
  • Learn how to value an entity or an entire firm
  • Know when to Leverage vs. Deleverage
  • Understand the risks & benefits of corporate & financial restructuring in today’s challenging world.
  • Understand the risks & rewards of leverage
  • Calculate the value of the firm in the real world
  • Understand the cost/benefit of a divesture
  • Enhance their knowledge with the use of the models
  • Significantly increasing their Excel® analysis skills

Targeted Competencies:

  • Knowledge about Acquiring
  • Financial Restructuring
  • Excel analysis skills

Course Content:

Unit 1: Introduction to Restructuring:

  • Introduction to restructuring
  • The Restructuring Framework
  • Proactive – planning the restructure before it is needed
  • Defensive - planning the restructure because it is needed
  • Distress - planning the restructure when the is no choice
  • Restructuring parties
  • Creditors – what do they expect
  • Shareholders– what do they hope for
  • Employees– what do they wish for

Unit 2: The Why & How of Restructuring:

  • The Why & How of it
  • Why companies restructure
  • How do companies successfully restructure in today’s world
  • When is the right time to restructure
  • The coordination and implementation of it all
  • The checklist for success
  • The “as is” value - what is the firm worth today
  • What is the product/service mix to decide what to keep and what to divest
  • Strategic partner or merger – the difference brings what value
  • Leverage – yes or no; pros & cons

Unit 3: Valuation in Restructuring:

  • Valuation
  • Which approach to use to be the most accurate
  • Liquidation value
  • Fire sale
  • Orderly
  • Asset-based methods
  • Comparables – market-driven
  • Free cash flows
  • Free cash flow to the firm
  • Free cash flow to equity
  • Option-based

Unit 4: Leverage:

  • Leveraging and deleveraging
  • Leverage – yes or no; pros & cons
  • Establishing required rates of return
  • Adjusting the costs of debt and equity for leverage
  • Leverage optimization through capital structure (Example)
  • Bond buybacks (Example)
  • Leveraged Buy-Out (LBO)
  • Going private – the costs vs. the benefits
  • The rationale for high leverage
  • Calculating your capacity for debt
  • Excel model for decision

Unit 5: Divestitures:

  • Why divest a business unit
  • The rationale for divestiture vs. alternatives
  • Divestiture vs. a spin-off
  • Equity carve-outs
  • Voluntary liquidations
  • Excel model for decision

Finance and Accounting Courses
Corporate Financial Restructuring (FA2013)

 

Mercury dynamic schedule is constantly reviewed and updated to ensure that every category is being addressed at least once a month, if not once every week. Please check the training courses listed below and if you do not find the subject you are interested in, email us or give us a call and we will do our best to assist.

Istanbul Office (Turkey)

training@mercury-training.com +905395991206

London (UK)

training@mercury-training.com +447481362802

Amman (Jordan)

training@mercury-training.com +962785666966