Corporate & Financial Restructuring

Day 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

• Case study

• Excel model for decision

Day 2:

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

Day 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

• Case study

• Excel model for decision

day 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]

• Case study

• Excel model for decision

day 5:

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