2 Part Course  | 
Book places now

Modelling for Corporate Restructuring

2 Part Course  |  Learn the practitioner’s guide to modelling for corporate restructuring

Illuminated abstract structure

A one-day course presented over two-half days in a virtual class from 1:30pm to 5:00pm UK time

Part One

Going Concern - Disposals

  • Why do corporates divest or restructure their assets?
  • Review of key considerations in corporate modelling
    • Strategic;
    • Liquidity;
    • Valuation;
    • Tax;
    • Regulatory and anti-competition;
  • Promoted by management, sometimes pushed for by shareholders
  • Types of divestitures
    • Private sale;
    • Spin-off/split-up;
    • Split-off;
    • Carve-out.
  • Financial modelling analysis performed
    • Structural impact;
    • Balance sheet deconsolidation;
    • Earnings Per Share (EPS) accretion (dilution) and relative P/Es (Price-to-earnings ratio).

Private Market Sale

  • Structural considerations
    • Pre-deal and post-deal in financial modelling structures
  • Balance sheet deconsolidation
  • Tax impact of deconsolidation
  • EPS accretion (dilution)
  • Reinvesting the sales proceeds

Case study I – Participants model a telecom company’s disposal of its foreign subsidiary. This is a multi-billion cash and share transaction. The participants focus on the balance sheet impact and review the post-transaction leverage ratio impact.

Spin-Off

  • Definition, advantages & disadvantages
    • Existing shareholders receive a new share in the spin-off entity
  • Adjustment of the capital financial modelling structure prior to the spin-off
  • Best executed with traded stock for valuation purposes
  • Ownership structure impact on corporate financial modelling
  • Balance sheet impact - treatment as dividend-in-kind
  • EPS accretion (dilution)
  • Split-up similar to spin-off except old parent dissolved

Case study II – Participants model a three-way spin-off of a multinational engineering company. This includes a pre-transaction leveraging and intra-group dividend payment followed by the deconsolidation modelling of its two subsidiaries.

Equity Carve-Out

  • Definition, advantages & disadvantages
    • Usually initial step of a two-step spin-off and split-off
    • IPO of subsidiary shares (primary/secondary shares)
  • Financial modelling structures are typically adjusted prior to the offering
  • Carve-out structure impact on business restructuring modelling
  • Balance sheet impact treatment and non-controlling interests
  • EPS accretion (dilution)

 

 

Part Two

Distressed and Insolvency

  • Distressed vs insolvency
  • Distressed refers to the situation where the company is in the hands of the creditors
  • Insolvency is a legal definition
    • Balance sheet insolvency
    • Cash flow insolvency
  • The link between Enterprise Value and debt value in a distressed scenario
    • Equity value is zero and debt trades below book values

Strategic Options for Distressed Companies

  • Raising capital (unlikely to be available)
  • Asset sales or partial disposal
  • Sell the business as a whole (pre-restructuring at a discount)
  • Debt restructuring (out-of-courts)
  • Debt restructuring (in-court)
  • Liquidation
  • Business restructuring modelling

Valuation Methodologies

  • Liquidation vs going concern
  • Liquidation value
    • Recovery rate
  • Going concern
    • EBITDA (Earnings before interest, taxes, depreciation, and amortisation) multiples
  • Restructuring analysis
    • Cash flow and debt waterfall modelling with RCF (Revolving Credit Facility), mandatory and accelerated repayment, cash vs PIK (Payment-in-kind) interests

Liquidation Value

  • Net asset value modelling methodologies
  • Recovery rate (RR) and loss-given default (LGD)
    • Asset liquidation value is usually estimated as a % of book value
    • Most liquid assets (cash and marketable securities): 100% recovery rate
    • For most assets, only a fraction of book value recoverable
  • Liquidation fees, dismantling and decommissioning costs
  • Assessing payment priority of assets liquidated
  • Contractual subordination
    • Secured vs unsecured
    • Senior, subordinated, preferred and equity
  • Structural subordination
    • Group-level or by borrowing entity
    • Maturity and guarantees

Case Study III: Modelling of payment priorities under different subordination scenarios.

Debt Restructuring Modelling

  • Debt package under different business restructuring modelling scenarios
    • Debt capacity and cash flow repayment capabilities
    • Debt forgiveness
    • Payment extensions
    • Debt-equity swaps

Case study IV – – Modelling, valuation of a distressed industrial company under different scenarios: sale as a going concern, liquidation value and modelling in different types of corporate debt restructuring.

Our corporate restructuring modelling course trainer has more than 20 years of experience in accounting and investment banking. He is an experienced financial modelling trainer who has delivered courses for leading institutions and central banks in the City of London, Wall Street and around the world in the areas of Corporate Finance, Valuation (Industrials and Banks), Financial Modelling, M&A, LBO (leveraged buyouts), Financial Accounting, Capital Markets, Bank Regulatory Capital and Financial Risks, both in English and French.

He began his career as a Credit Analyst at Banque Continentale in Luxembourg, where he conducted credit analyses for short and long-term credits and participated in loan syndications. He then worked as a Senior Auditor for Deloitte & Touche in Luxembourg companies, auditing and preparing financial statements for a variety of banks, insurance, investment funds, venture capital and commercial companies.

He continued his career in Investment Banking at Citigroup (ex-Salomon Smith Barney) in London and New York, where he worked on a variety of M&A, LBO and debt offerings, mainly for financial services clients. He was involved in the EUR 20 billion public offer of Crédit Lyonnais by Crédit Agricole, one of the largest European banking transactions.

He then worked as a Vice-President in the internal M&A department of Barclays Bank in London, where his experience included the acquisition of ABSA for US$ 5 billion, one of the leading South African banks, the purchase of ING Private Banking in France and the failed acquisition of Banco Atlantico in Spain.

Recently, he was a Director in the Investment Banking department of Commercial International Bank (CIB), the largest non-government bank in Egypt, where he has successfully completed several transactions including two sell-side M&A deals, one follow-on equity offering and a delisting. He worked extensively with leading sovereign wealth funds, private equity firms and prominent families in the UAE, Qatar, Kuwait and Saudi Arabia.

Our trainer is a senior advisor to an M&A practice based in Paris and focuses on buy-side and sell-side transactions, mainly in the technology sector.

He has an MBA in Finance from the Kellogg School of Management in Chicago and a Bachelor of Science in Finance from Groupe INSEEC (“International Management Institute of Paris”). He holds « Series 7 » and « Series 63 » US licences.

This Modelling foe Corporate Restructuring training will cover the following objectives:

  • Be introduced to why corporates restructure their assets both for going concern and gone concern scenarios.
  • Get an overview of the key considerations and the types of divestitures in the corporate business model.
  • Review business models of famous divestitures and corporate restructuring.
  • Understand the private market sale.
  • Master the concept of a subsidiary IPO (International Public Offering), including the costs of listing and IPO discount pricing in corporate modelling.
  • Gain an understanding of spin-offs and equity carve-outs in modelling for corporate restructuring.
  • Understand the valuation of a distressed company in corporate restructuring modelling.
  • Model the various options for the debt holders and creditors of a distressed company.
  • Explore the priority of debt repayment in a liquidation and a debt restructuring model, including debt forgiveness, and debt-to-equity swaps.

  • Our practical Modelling for Corporate Restructuring course is delivered by an experienced trainer, an M&A (Mergers and Acquisitions) banker with years of divestiture experience in Europe and the Middle East
  • Comprehensive valuation material covering all different types of divestitures and restructuring modelling
  • Step-by-step, easy-to-follow Excel models illustrating key forms of divestitures and corporate restructuring
  • Delegates are encouraged to bring their divestiture and financial restructuring modelling challenges to ‘solve’ during the session

Our corporate restructuring training course covers the main divestiture options available to a firm as a going concern.

We focus on the private market sale, Initial Public Offering (IPO), spin-off and equity carve-out. The motives, pros and cons of each structure are explained in detail in light of precedent transactions. We also discuss the financial modelling impact, including balance sheet deconsolidation and EPS accretion (dilution). Spreadsheet work and real divestiture cases are used throughout the financial modelling session.

Much of the course involves Excel modelling and analysis, equipping participants with the tools to analyse divestiture and business restructuring modelling transactions:

  • Building up from partially complete models on real case scenarios
  • Running scenarios, iterating and optimising.
Number of places:
Part 1

£ 695.00

Number of places:
Part 2

£ 695.00

Discounts available:
Virtual Class

  • 2 places at 30% less
  • 3 places at 40% less
  • 4 places at 50% less
  • 5 places at 55% less
  • 6+ places at 60% less
  • Select the number of course places and dates to automatically calculate the discount
    *T&Cs apply,
    click here
    to read
    ADD TO BASKET REQUEST CALL BACK
    Trusted By:

    We use cookies

    In order to show you courses tailored to your profession we use cookies.

    To enjoy all the features of this website please accept.