Introduction to Corporate and Financial Restructuring
Corporate financial restructuring encompasses a range of strategies to reorganize a company's economic and financial structure to increase stakeholder value.
Mismanagement and external factors can often erode this value, and the financial restructuring course is imperative to understand how to implement change effectively.
In this corporate financial restructuring course, we delve into the intricacies of corporate and financial restructuring, emphasizing the practical approaches to addressing such challenges in today's rapidly evolving business landscape.
We aim to give participants robust knowledge of financial restructuring and how to differentiate it from operational restructuring, providing them with the tools and frameworks necessary for making informed decisions in real-world scenarios.
Targeted Groups
- Top management of corporations.
- Finance managers.
- Finance professionals.
- Operations professionals.
- Individuals seeking to enhance financial and managerial acumen.
Course Objectives
Upon completion of this financial restructuring course, participants will:
- Gain a comprehensive understanding of the various forms of restructuring.
- Discuss the distinctions between corporate and financial restructuring.
- Evaluate the strategic choices between acquiring and divesting operating units.
- Develop effective techniques to value entities or entire firms.
- Explore strategies for leveraging and deleveraging.
- Assess the risks and benefits associated with corporate and financial restructuring models.
- Understand the risks and rewards of leverage.
- Calculate the value of the firm in the real world.
- Understand the cost and benefits of divestiture.
- Enhance their knowledge with the use of restructuring modeling.
- Enhance their analytical abilities, particularly with Excel® models.
Targeted Competencies
- Knowledge about financial restructuring and corporate acquisitions.
- Advanced Excel analysis skills for financial modeling.
- Expertise in restructuring financial modeling.
Course Content
Unit 1: Introduction to Restructuring Modeling
- Overview of restructuring modeling dynamics.
- The restructuring modeling framework.
- Proactive planning for restructuring before it is needed.
- Defensive restructuring planning because it is necessary.
- Distress and difficulty in planning restructuring when there is no choice.
- Restructuring modeling parties.
- Creditors and what they expect.
- Shareholders and what do they hope for.
- Employees and what they wish for.
Unit 2: The Why and How of Restructuring Modeling
- Motivations behind corporate restructuring modeling.
- Why do corporate restructuring?
- Successful restructuring execution in the contemporary business environment.
- When is the right time for corporate reorganization?
- The coordination and implementation of corporate restructuring all.
- The checklist for success restructuring modeling.
- Valuation assessment of firms (as-is value).
- Decision-making for product/service mix in restructuring scenarios.
- Distinguishing between strategic partnerships and mergers.
- Leverage yes or no; pros and cons.
Unit 3: Valuation in Corporate Restructuring
- Introduction of valuation in corporate restructuring.
- Approaches for accurate valuation in financial restructuring.
- Assessing liquidation values in financial restructuring modeling.
- Fire sale.
- Orderly.
- Asset-based methods.
- Utilizing comparables of market-driven.
- Analyzing free cash flows.
- Free cash flow to the firm.
- Free cash flow to equity.
- Examining option-based valuation techniques.
Unit 4: Leverage in Financial Restructuring
- The implications of leveraging and deleveraging decisions
- Leverage yes or no; pros and cons.
- Establishing rates of return.
- Adjusting the costs of debt and equity for leverage.
- Capital structure optimization and bond buyback strategies.
- Bond buybacks (Example).
- Leveraged Buy-Outs (LBOs).
- Considerations for going private in the costs vs. the benefits.
- The rationale for high leverage.
- Calculating your debt capacity.
- Excel model for decision.
Unit 5: Divestitures in Corporate Financial Management
- Why divest a business unit?
- The rationale for divestiture vs. alternatives.
- Analyzing alternatives: divestiture, spin-offs.
- Equity carve-outs.
- Strategic voluntary liquidations.
- Decision-making Excel models.
Through this corporate financial management course, participants will gain a deeper understanding of corporate and financial accounting principles, explore restructuring modeling techniques, and gain expertise immediately applicable to real-world situations.
Whether for a financial management corporation or an individual business, this corporate and financial restructuring course provides a pathway to mastering the complexities of corporate financial management and restructuring.
