About
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:
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What is restructuring & what are the alternatives
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When & why should you restructure vs. not
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How to calculate the “real” value of a firm both before & after a restructuring
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What is Leverage; when to use it and how best to finance it
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When to divest an operating unit & how to do it to optimize the remaining value
On completion of this module delegates will be able to:
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Fully understand the various form of restructuring
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Discuss the real difference between Corporate & Financial restructuring
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Know when to acquire vs. divest an operating unit
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How to value an entity or an entire firm
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Know when to Leverage vs. Deleverage
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Learn to use a range of Excel models (provided)
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.
The organization will benefit by:
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Having Experts in-house to develop advanced decision support models
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Higher productivity of personnel involved in restructuring analysis
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Improved performance of corporate & financial restructuring methods
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Better ways to plan & measure results of decisions
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Realizing better options when facing divestiture choices
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Better integration between functional areas leading to better decisions
The delegate will benefit by:
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Developing an improved understanding of the risks & benefits of corporate & financial restructuring in today’s challenging world.
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Really understanding the risks & rewards of leverage
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Being able to calculate the value of the firm in the real world
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Understanding to cost/benefit of a divesture
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Enhancing their knowledge with the use of the models in the case studies
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Significantly increasing their Excel® analysis skills
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Corporate finance officers
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Strategic planners
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Accounting
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Lenders
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Investors
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Mergers & Acquisition specialists
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Corporate officers
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Commercial and investment bankers
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Securities analysts
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Private equity specialists
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Asset managers
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And other individuals whose professional future may be enhanced by an understanding of restructuring techniques.
Day 1 – Introduction to Restructuring
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The Restructuring Framework
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Proactive – planning the restructure before it is needed
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Defensive – planning the restructure because it is needed
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Distress – planning the restructure when the is no choice
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Restructuring parties
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Creditors – what do they expect
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Shareholders– what do they hope for
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Employees– what do they wish for
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Case study
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Excel model for decision
Day 2 – The Why & How of Restructuring
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The Why & How of it
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Why companies really restructure
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How do companies successfully restructure in today’s world
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When is the right time to restructure
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The coordination and implementation of it all
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The checklist for success
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The “as is” value – what is the firm worth today
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What is the product/service mix to decide what to keep and what to divest
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Strategic partner or merger – the difference brings what value
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Leverage – yes or no; pros & cons
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Example
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Case study
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Excel model for decision
Day 3 – Valuation in Restructuring
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Valuation
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Which approach to use to be most accurate
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Liquidation value
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Fire sale
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Orderly
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Asset-based methods
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Comparables – market driven
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Free cash flows
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Free cash flow to the firm
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Free cash flow to equity
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Option-based
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Case study
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Excel model for decision
Day 4 – Leverage
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Leveraging and deleveraging
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Leverage – yes or no; pros & cons
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Establishing required rates of return
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Adjusting the costs of debt and equity for leverage
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Leverage optimization through capital structure (Example)
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Bond buybacks (Example)
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Leveraged Buy Out (LBO)
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Going private – the costs vs. the benefits
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The rationale for high leverage
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Calculating your capacity for debt
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Case study
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Excel model for decision
Day 5 – Divestitures
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Divestitures
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Why divest a business unit
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The rationale for divestiture vs. alternatives
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Divestiture vs. a spin off
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Equity carve-outs
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Voluntary liquidations
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Case study
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Excel model for decision
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Summary and Conclusion
Training Methodology
Pathways Training and consulting adopts the newest techniques of human resources Training and consulting and, with the following:
- Theoretical lectures are delivered via PowerPoint and visual displays (videos and short films)
- Making scientific evaluation to the trainee (before and after)
- Brainstorming and role-playing
- Using case studies related to the scientific material being delivered and the trainees' work.
- The participants get the scientific and practical material printed and on CDs and Flash memories.
- Preparing records and reports of the participants' attendance and results, with a general evaluation of the training program.
- A group of the best trainers and experts in all fields and specialties professionally prepares the scientific material.
- After finishing the course, the participants get certificates of attendance signed, certified, and issued by pathways Training and consulting.
- Our training programs start at 9:00 o'clock in the morning and end at 2:00 in the afternoon, with snack buffet during the lectures.
- Providing a lunch buffet during the training program period, with organizing a lunch party on the training program final day for taking some photos and certificate awarding.
