Euro-training Center
 Corporate & Financial Restructuring (F2013) QR Code

Corporate & Financial Restructuring

Overview:

Just because a company needs restructuring -- financial or operational -- 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; either 1) Financial restructuring or 2) 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 through case studies, examples and Excel® models as well as discussions of alternatives.Main ideas explored include:

  • What is restructuring & what are the alternatives.
  • When & why should you restructure vs. not.
  • How to calculate the “real” value of a firm both before & after a restructuring.
  • What is Leverage; when to use it and how best to finance it.
  • When to divest an operating unit & how to do it to optimize the remaining value.

Objectives:

On completion of this module delegates will be able to:

  • Fully understand the various form of restructuring.
  • Discuss the real difference between Corporate & Financial restructuring.
  • Know when to acquire vs. divest an operating unit.
  • How to value an entity or an entire firm.
  • Know when to Leverage vs. Deleverage.
  • Learn to use a range of Excel models (provided).

Training Methodology:

The training comprises teaching sessions covering each topic area with the theory blended with practical application. Additionally, real world examples & case studies will be used so that the Delegates will be able to apply these techniques immediately. Delegates then use the provided Excel® templates to apply their new knowledge case studies to reinforce the concepts.

Organizational Impact:

The organization will benefit by:

  • Having Experts in-house to develop advanced decision support models.
  • Higher productivity of personnel involved in restructuring analysis.
  • Improved performance of corporate & financial restructuring methods.
  • Better ways to plan & measure results of decisions.
  • Realizing better options when facing divestiture choices.
  • Better integration between functional areas leading to better decisions.

Personal Impact:

The delegate will benefit by:

  • Developing an improved understanding of the risks & benefits of corporate & financial restructuring in today’s challenging world.
  • Really understanding the risks & rewards of leverage.
  • Being able to calculate the value of the firm in the real world.
  • Understanding to cost/benefit of a divesture.
  • Enhancing their knowledge with the use of the models in the case studies.
  • Significantly increasing their Excel® analysis skills.

SEMINAR OUTLINE:

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.
  • Case study.
  • Excel model for decision.

The Why & How of Restructuring:

  • The Why & How of it.
  • Why companies really 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.
  • Example.
  • Case study.
  • Excel model for decision.

Valuation in Restructuring:

  • Valuation.
  • Which approach to use to be 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.
  • Case study.
  • Excel model for decision.

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].
  • Case study.
  • Excel model for decision.

Divestitures:

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

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