Course Page

Corporate Restructuring

Course Number:

45921


Faculty

Robert Dammon, rd19@andrew.cmu.edu


Program

MBA


Concentrations

Finance, Strategy


Course Description

FOR MBA STUDENTS ONLY.

This course covers the financial, economic, and strategic reasons for major corporate restructuring transactions. The types of corporate restructurings that are examined include: mergers and acquisitions, divestitures, leverage buyouts and private equity deals, financial restructurings, and bankruptcy reorganizations. The course begins with an overview of corporate restructuring and develops the three main valuation methods used to evaluate corporate restructuring transactions: (1) DCF valuation, (2) trading and transaction multiples valuation, and (3) premiums paid analysis. The instructor will deliver a lecture on each type of restructuring transaction, focusing on how the transactions are structured, why they occur, and whether they create value empirically. Students will work in groups to analyze real-world case studies dealing with each type of restructuring transaction, prepare written reports, and make presentations.

Topics that are covered in this course:

* Valuation methods

* Mergers and acquisitions
* Divestitures
* Leveraged buyouts and private equity

* Financial restructurings
* Bankruptcy reorganizations

Topics covered in this course are relevant to/for:
* Corporate Finance

* Investment Banking

* Consulting

Outcomes, goals, objectives, principles of this course will provide an understanding of:

* Valuation methods used for corporate restructuring transactions

* Economic, financial, and strategic reasons for corporate restructurings

* Empirical evidence on corporate restructurings

Assignments:
* Case studies
* Written reports
* Oral presentations

(10/12-RD)

 


Format

Lecture: 100min/wk and Recitation: 50min/wk


Pre-requisites

45720 OR 45820