: Istanbul-Turkey: +905395991206 - Amman-Jordan: +962785666966 London-UK: +447481362802
-->

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