Financial Reorganization

Course Objectives

Students will gain insight into changes involving the large-scale restructuring of a company’s balance sheet. By selecting case examples of M&As, private equity buy-outs, spin-offs, bankruptcy reorganizations, and so forth, students will study the processes involved in these activities and understand the viewpoints of general managers. Students will also study the means of selecting the optimum method for the maximization of enterprie/shareholer values. The class work also includes role-playing, with the students assuming the parts of the management team and the creditors/shareholders.

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

Click here to see a list of Preliminary Recommended Courses

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 ・Chase Manhattan Corporation: The Making of America's Largest Bank
Session B
THEME Financial Reconstruction for Assets - Large-scale M&A (Continued)
CASE ・Chase Manhattan Corporation: The Making of America's Largest Bank
 
Day 2
Session A
THEME Financial Reconstruction for Assets - LBO/Private Equity
CASE ・RJR Nabisco
Session B
THEME Financial Reconstruction for Assets - LBO/Private Equity(Continued)
CASE ・RJR Nabisco
 
Day 3
Session A
THEME Financial Reconstruction of Equity - Tracking Stock
CASE ・USX Corporation
Session B
THEME Financial Reconstruction of Equity - 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 Reconstruction of Debt
CASE ・The Brent Walker Group PLC
Session B
THEME Financial Reconstruction of Debt (Continued)
CASE ・The Brent Walker Group PLC

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

Principles of Corporate Finance
11th ed. McGraw-Hill Education
Brealey, Richard A., Myers, Stewart C., Allen, Franklin, 2014

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”!"