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040118 KU Corporate Restructuring (MA) (2022S)

4.00 ECTS (2.00 SWS), SPL 4 - Wirtschaftswissenschaften
Continuous assessment of course work
Moodle

Registration/Deregistration

Note: The time of your registration within the registration period has no effect on the allocation of places (no first come, first served).

Details

max. 50 participants
Language: English

Lecturers

Classes (iCal) - next class is marked with N

first session: Friday, 29 April, 2.00 pm, OMP1, HS 10

  • Friday 29.04. 14:00 - 19:00 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
  • Saturday 07.05. 09:00 - 14:00 Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock
  • Saturday 14.05. 09:00 - 14:00 Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock
  • Saturday 21.05. 09:00 - 14:00 Hörsaal 6 Oskar-Morgenstern-Platz 1 1.Stock

Information

Aims, contents and method of the course

We will consider different financial transactions involving the in-depth restructuring of a company’s business and/or capital structure. The emphasis will be on the valuation techniques and execution stages of a diverse set of restructuring transactions, but we will also discuss some aspects of the strategic rationales underlying these transactions.

Main themes

Conglomerate Valuation (Divestitures and Spinoffs)
Leveraged buyouts (LBO) and management buyouts (MBO)
Distressed Restructuring
Initial public offerings (IPO)

Sessions

Lectures on background and techniques,
Team work on case studies
Discussions of team case studies

Topic 1: Conglomerates

In this session we will look at specific issues related to the valuation of conglomerates that consist of firms operating in different industries.

Case study: USX (CASENET)

Topic 2: Leveraged Buyouts

Next we will discuss leveraged buyouts (LBOs) and management buyouts (MBOs) again in terms of their possible rationales, specific valuation methods, execution, and performance. We will start with a case set from the viewpoint of a MBO target before going through a step-by-step projection and valuation exercise from the viewpoint of the acquirer in a LBO.

Case study: TBA

Case study: TBA

Topic 3: Distressed Restructuring

Guest Lecture: KPMG

The guest lecture predominantly focuses on the differentiation between out-of-court and judicial restructuring proceedings and further points out differences between the most common international proceedings. Besides the general legal and economic fundamentals, various types and causes of crises are presented. In order to achieve a company’s turnaround, a variety of operational and financial measures are discussed. The topics presented in the course of the guest lecture serve as the basis for a concluding case study that will be worked out by the students.

Case study: Provided by KPMG

Topic 4: Initial Public Offerings (IPO) and Spinoffs

Last, we will focus on a company’s decision to undertake an initial public offering (IPO), the process of “going public”, including the structuring and pricing of the offering. Time permitting, we will conclude with a discussion of spin-off, carve-outs and other transactions in which a multi-business company separates fully or partially from a business unit.

Case study: TBA

Assessment and permitted materials

The course involves four 5-hour sessions. Sessions consist of lectures, cases, take-home exercise, and will involve class discussion. Case studies are the bread and butter of this course. Before each session, please read the corresponding case study and study questions. There is no need to prepare a case analysis before the session as session time will be set aside for team work. However, thinking about the questions ahead of time will help you hit the ground running.
The students are required to purchase the case studies discussed in the course.

Case Studies

The case method is one of the most effective pedagogical tools to sharpen your analytical and decision-making skills, as it requires you to be an active participant in financial decisions. The discussion constitutes an opportunity to defend your position and to learn from others, by listening to their comments and criticisms. The online Zoom sessions are our training environments to prepare you for business challenges.
Regarding the cases, each group will submit a three-page memorandum of analysis and recommendations covering the case study questions plus any accompanying tables you wish to include. Tables should be well organized and labelled. Be sure to indicate how you arrived at your conclusions. In addition, groups are required to prepare a power point presentation, including the main points of the analysis.

Minimum requirements and assessment criteria

Requirements:

Previous knowledge in Corporate Finance and Valuation is required. Please notice that this is an advanced course, and not an introduction to valuation!

The precondition for the participation is the positive completion of the courses:

KU Corporate Finance 1 AND KU Valuation!

Note that participation in the course is COMPULSORY. As this is a blocked course with only 4 meetings, no session can be missed, without any exception! Not being able to attend all sessions will result in failing the course.

The evaluation will be based on the following items:

80% Case-study work (in groups) –in class and take-home

20% Participation

Examination topics

The course grading is based on Case-study work (80%) and participation (20%).

Reading list

Donald DePamphilis: Mergers, Acquisitions and Other Restructuring Activities (Academic Press, 2nd ed.)

Other recommended books:

Patrick Gaughan, Mergers, Acquisitions and Corporate Restructurings (3rd ed, Wiley)
Stuart Gilson, Creating Value Through Corporate Restructuring (Wiley Finance)
Fred Weston and Samuel Weaver, Mergers and Acquisitions (Mc Graw-Hill)
Fred Weston, Kwang Chung, Juan Siu, Takeovers, Restructuring, & Corporate Governance (2nd Ed., Prentice-Hall)

Links to cases from HBS, INSEAD and HEC, which course participants are required to purchase, will be provided in due course.

Association in the course directory

Last modified: Fr 08.04.2022 12:47