Financial Reorganization

Course Objectives

"It goes without saying that most companies, regardless of their history or achievements, need to transform and restructure their stagnant businesses in order to survive. In many cases, a revision of the very corporate framework itself is necessary and this includes the large-scale reconstruction of balance sheets. In Japanese companies especially, one of the biggest weaknesses is the lack of managers who, while receiving support from the finance specialists, can comprehensively assess the fundamental issues of such restructuring actions and make adequate decisions. Challenges related to IR (investor relations) activities for shareholders and other investors are also noted. Using large-scale financial restructuring case studies, this course will help students deepen their understanding of restructuring processes such as M&As, dealing with shareholder activists, business portfolio reorganization and debt restructuring. This course also aims at cultivating practical knowledge and insight regarding corporate value enhancement through large-scale corporate restructuring projects and their balance sheet adjustments. "

During this course, students will learn the restructuring techniques for transforming corporations. Students will gain general management insight on how and when to use the most suitable techniques. This course is especially intended for students who are interested in corporate planning, building corporate business portfolios, supporting alliances or restructuring companies.

 

Course Details

Programs: Full-time MBA, Part-time MBA
Discipline: Innovation
Course Level: Specialized Course
Required/Elective Course: Elective Course
Number of Credits: 1.5
Report: Day 4
Hours Per Class: 3 hours
Class Capacity: 35 (Part-time MBA)

 

Recommended Preliminary Courses

- Critical Thinking
- Finance I
- Finance II
- Strategy

 

Theme/Reading Materials

(*The themes and cases shown below are subject to change)

Day 1
Session A
THEME Financial Reconstruction for Assets - Large-scale M&A
CASE The Birth of New Nippon Steel
Session B
THEME Financial Reconstruction for Assets - Large-scale M&A (Continued)
CASE The Birth of New Nippon Steel
 
Day 2
Session A
THEME Reconstructing Corporate Governance - A Dialog with the Market (Funds)
CASE FANUC Corporation : Reassessing the Firm's Governance and Financial PoliciesSession B
THEME Reconstructing Corporate Governance - A Dialog with the Market (Funds)(Continued)
CASE Who does the company belong to? Hanshin Electric Railway Co. vs. Murakami Fund
Day 3
Session A
THEME Financial Reconstruction of Equity—Targeted (Tracking) Stock
CASE ・USX Corporation
Session B
THEME Financial Reconstruction of Equity—Targeted (Tracking) Stock(Continued)
CASE ・USX Corporation
 
Day 4
Session A
THEME Reexamining Business Models and Financial Reconstruction
CASE ・NEC’s Semiconductor Business Reorganization in 1999
Session B
THEME Reexamining Business Models and Financial Reconstruction(Continued)
CASE ・NEC’s Semiconductor Business Reorganization in 1999
 
Day 5
Session A
THEME Bankruptcy Reorganization process
CASE ・Adelphia Communications Corp.'s Bankruptcy
Session B
THEME Bankruptcy Reorganization process (Continued)
CASE ・Adelphia Communications Corp.'s Bankruptcy
 
Day 6
Session A
THEME Financial Restructuring of Debt - Restructuring of Debt and Equity for Company Survival
CASE The Japan Airlines Bankruptcy and the Development Bank of JapanSession B
THEME Financial Restructuring of Debt - Restructuring of Debt and Equity for Company Survival (Continued)
CASE The Japan Airlines Bankruptcy and the Development Bank of Japan

Textbook (Please purchase the following textbook before the course starts.)

Richard Brealey and Stewart Myers and Franklin Allen, 2020. Principles of Corporate Finance. 13th ed. Global ed. McGraw-Hill Education.

ISBN-10: 0077151569
ISBN-13: 978-0077151560

Faculty

Satoshi Hirose
Satoshi Hirose
Innovation, Management Philosophy
"Sound management would create competitive organization, while loose management would guide company to difficulties in long-run, and make stakeholders, including employees and their families, facing unexpected tough environment. Finance is an excellent tool to examine current situation with fact and logic, and also to evaluate impact and feasibility of strategic options. Everybody need NOT to become financial specialist, at all. However understanding how to use finance would be indispensible to become good management officer. My class is designed to create good management officer, instead of financial specialist."
Akira Morio
Akira Morio
Innovation
"If you wonder “Why do I need to study finance at a Japanese school?”, welcome to my class! In the Financial Reorganization course, we cover M&A, corporate restructuring and bankruptcy reorganization topics. You will learn financial practices of US investment banks and companies as compared to those in Japan/Asia. The recent world financial crisis may have revealed to us that the US-style finance theories and skills require an overhaul. I look forward to exchanging various views on capitalism, free-market mechanism, shareholder activism, and what to do with the “greed of Wall Street”!"