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.
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.
Day 2: 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 3: 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.
Day 4: 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 and Case study.
Day 5: Valuation in Restructuring
- Valuation.
- Which approach to use to be most accurate.
- Liquidation value.
- Fire sale.
- Orderly.
Day 6: Asset-based methods
- Comparables – market driven.
- Free cash flows.
- Free cash flow to the firm.
- Free cash flow to equity.
- Option-based.
Day 7: 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.
Day 8: Bond buybacks
- Leveraged Buy Out (LBO).
- Going private – the costs vs. the benefits.
- The rationale for high leverage.
- Calculating your capacity for debt.
- Case study.
Day 9: Divestitures
- Divestitures.
- Why divest a business unit.
- The rationale for divestiture vs. alternatives.
- Divestiture vs. a spin off.
- Equity carve-outs.
Day 10: Voluntary liquidations
- Excel model for decision.
- Case-Study.
- Summary and Conclusion.
Language: English.
Place: London – UK.
Venue (TBC): Radisson Edwardian Sussex Hotel (Address: 19-25 Granville Place, Marylebone, London W1H 6PA – UK).