Course Catalog and Schedule

Mergers and Acquisitions, LBOs and Corporate Restructuring (FINC-448-0)
1.00 Credit
TCE BidStats

The course involves analysis of corporate restructuring strategies including mergers, acquisitions, hostile takeovers and the market for corporate control, financial re-capitalizations, leveraged buyouts, management buyouts, going-private decisions, fiduciary duties (Business Judgment Rule, Revlon Mode, Enhanced Scrutiny), reorganization under bankruptcy (Chapter 11, Chapter 7, 363 Sales, Pre-Package Bankruptcy), the role of private equity and other methods of restructuring (spin-offs, split-ups, carve-outs and tracking stock). Transactions are examined from the perspectives of both the corporation and capital markets. Common ┬┐arbitrage┬┐ trading strategies involving corporate transactions and limits to arbitrage will also be discussed. The course integrates the corporate governance and agency dimensions, financial and strategic management aspects, and legal and accounting considerations into a unified framework for investigating issues such as, pre-merger planning, fact-finding, accounting and tax implications, anti-trust problems, post-merger integration, and short-term and long-term shareholder wealth consequences of financial and organizational restructuring transactions. The course combines applied theoretical approach with the case study method through detailed analysis of domestic and global restructuring deals. The course is designed so as to create an interface or link between the academic and the practitioner perspectives of various dimensions of corporate restructuring process.

Financial topics include:

Accretion vs. Dilution Analysis

The P/E Problem in Acquisitions

Strategic vs. Financial Acquisitions

The Role of Private Equity Firms in Acquisitions

Structuring Offers and Forms of Payment: Cash vs. Stock; Fixed vs. Floating Stock Payments

Hedging In M&A: Earn-Outs, Collars and Price Guarantees

Defense Tactics

Hostile Takeovers and the Role of Activist Shareholders

Merger of Equals

Corporate Restructuring: Spin-Offs, Split-Ups, Equity Carve-Outs and Tracking Stock

Recapitalization of Troubled Companies: Out-of-Court, In-Court and Pre-Packaged Bankruptcy Procedures, Chapter 11 vs. Chapter 7 vs. 363 Sales

Distressed Debt Investment

LBOs Modeling and Valuation

Asset Backed Securities

The Role of Risk Arbitrageurs and Limits to Arbitrage

Who Should Take This Course?

The course is aimed at students planning to work for investment banks and corporate advisory firms involved in business restructuring and turnarounds, mergers and acquisitions, and financial reorganization transactions. The course offers a comprehensive strategic perspective, a framework of conceptual and theoretical paradigms, and applied tools for deal design and corporate valuations that may facilitate students establishing their own consulting and advisory services.

This course can be taken if you do not meet the prerequisite requirement ONLY IF the permission of the instructor is given. An understanding of financial options will be assumed.

All Students: FINC-442-0

Download Schedule Information

Command item
Academic Year Term   Course ID Title Sec ID   Credits Syl Instructor Times Campus Location Mand 1st Exam
2014-2015 Winter 2015 FINC-448-0 M&As, LBOs and Corporate Restructuring 81 1 Liberti, Jose Maria Wed 6:30 PM - 9:30 PM Evanston Jacobs (G44) N Check syllabus and confirm final deliverable with professor.
2014-2015 Spring 2015 FINC-448-0 M&As, LBOs and Corporate Restructuring 81 1 Liberti, Jose Maria Tue 6:30 PM - 9:30 PM Evanston Jacobs (G42) N Check syllabus and confirm final deliverable or exam with professor.