Carnegie Mellon University

Corporate Restructuring

Course Number: 45921

Requires Completion of 45-820 Finance II.

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

Degree: MBA
Concentrations: Finance, Strategy
Academic Year: 2023-2024
Semester(s): Mini 2
Required/Elective: Elective
Units: 6


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