Building on capital markets and valuation principles, this course examines how and why different types of corporate restructurings affect firm value. The topics include mergers and acquisitions, leveraged buyouts, leveraged recapitalizations, the use of EVA, divestitures, and bankruptcy as an option to restructure the balance sheet. The readings cover both the academic literature and company-based cases. Students will evaluate the value-creating potential of different financial approaches to corporate transformation from the practitioner’s perspective; and will complete a final team project that incorporates key analytical skills and course concepts.
Prerequisites: BFIN 2410 Financial Management 2 and BFIN 2030 Valuation 1.