Corporate Restructuring (2235.YR.001639.1)

General information

Type:	OPT	Curs:	1	Period:	S semester
ECTS Credits:	3 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Year 1	Panayiotis Andreou	Economía, Finanzas y Contabilidad	ENG

Core corporate finance course offered at the MSc in Finance Program.

Previous knowledge in corporate finance and enterprise valuation is required.

Upon completing this course, students should be able to understand and analyse:
- the need and scope of corporate restructuring, the feasibility and trade-offs employed in the different forms of restructuring
- the various modes of restructuring (e.g., spin-offs, carve-outs, LBOs, leveraged recapitalization), as well as the planning and execution of various restructuring strategies
- compare, and argue over, corporate finance policy decisions relating to corporate restructuring strategies
- an in-depth understanding of conglomerate structures and the appropriateness of different valuation models used
Students should also:
- develop critical awareness of the issues related to corporate financial management decisions pertaining to corporate restructuring
- develop applied critical thinking and skills through solving real-world problems in the form of case studies

1. Course contents - Topic 1. Corporate Restructuring Strategies Discuss corporate restructuring in terms of their possible rationales and execution.Deciding when a corporate restructuring is appropriate and managing the process well have become increasingly important skills for executives in the last decades. This session also addresses the debate about the wealth (economic) effectiveness of corporate restructuring. - Topic 2. Corporate Diversification and Conglomerates In this session, we will take an extensive and in-depth look at specific issues related to the valuation of conglomerates that consist of firms operating in different (diversified) industries. Students will have the opportunity to go through the financial statements of renowned conglomerate corporations to discern their strategies and assess performance. Topic 3. Leveraged Recapitalization The session will be dedicated to transactions involving a substantial restructuring of the liability side of a company's balance sheet. We will begin with a discussion of leveraged recapitalizations, whereby a company increases its indebtedness by issuing a large amount of debt and using the proceeds for repurchasing its own shares. Topic 4. Leveraged & Management Buyouts (LBOs & MBOs) We will discuss leveraged buyouts (LBOs) and management buyouts (MBOs) again in terms of their possible rationales, execution, and performance.

Lecture notes (slides) will be used towards the presentation and discussion of frameworks, stylized facts, concepts, theories and practice that are relevant to the corporate restructuring context.

Assignments (e.g., case studies). Students will have the opportunity to work in groups during class time to provide answers to assignment questions that will be handed in for assessment.

- Donald Depamphilis: Mergers, Acquisitions and Other Restructuring Activities (Academic Press, 9th Edition)
- Patrick Gaughan: Mergers, Acquisitions and Corporate Restructurings (Wiley, 7th Edition)

Group	Teacher	Department
Year 1	Panayiotis Andreou	Economía, Finanzas y Contabilidad