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