040049 VK KFK CF: Advanced CF: Corporate Restructuring (2016S)

The goals of this course are: i) To provide an understanding of corporate governance, including what constituted strong governance and how governance affects firm value, ii) to build a framework to analyze corporate restructuring and M&A through financial analysis; and furthermore, iii) to establish an economic perspective to access the economic consequences of alternative corporate restructuring methods

The course consists of two parts. In the first part, we focus on Corporate governance. Corporate governance deals with how the suppliers of capital—both debt and equity—ensure that corporate managers make efficient use of that capital and provide investors with returns commensurate with the risks of their investments. In the second part, we further focus on analyzing of corporate restructuring strategies. (For example, mergers and acquisitions (M&A), friendly vs. hostile takeovers, financial re-capitalization, leveraged buyouts, management buyouts, going private, and reorganization under bankruptcy) In particular, we integrate the corporate governance and agency dimensions, and financial and strategic management aspects into a unified framework for investigating how the managers use these restructuring strategies in order to create values of firms.

The course also combines applied theoretical approach with the case study method through detailed analysis of restructuring cases. The focus will be on fundamental concepts of valuation and analytical tools of corporate restructuring.