Introduction

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

Who Should Attend?

·         Corporate finance officers

·         Strategic planners

·         Accounting

·         Lenders

·         Investors

·         Mergers & Acquisition specialists

·         Corporate officers

·         Commercial and investment bankers

·         Securities analysts

·         Private equity specialists

·         Asset managers

·         And other individuals whose professional future may be enhanced by an understanding of restructuring techniques.

 

 SEMINAR OUTLINE 

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 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