FM 07-Corporate Restructuring Strategy

Name Semester Programme Batch Email

Dr. (CA) Ajay Lunawat Fourth MBA Combined [email protected]
About the Course
Corporate restructuring entails any fundamental change in a company's business or financial structure, designed to increase the
company's value. This course aims to cover both aspects of corporate restructuring: financial restructuring and operational
restructuring. The types of corporate restructurings that are examined include: mergers and acquisitions, divestitures, leverage
buyouts, private equity deals and financial restructurings. The objective of the course is to aware students about the various
strategic ways to achieve superior corporate performance. Many Indian companies have adopted “maximising long-term
shareholder value” as the central corporate objective. Enhancing long-term shareholder value involves managing costs, driving
margins, managing capital structure, and inorganic growth through acquisitions and divestiture. Students will work in groups to
analyse real-world case studies dealing with each type of restructuring transaction, prepare written reports, and make
presentations
Course Outcomes mapped to Programme Outcomes (POs) PO
The students will understand and analyse the significance of different types & forms of
CO1 PSO1b
corporate restructuring and its strategical implications.
The students will be able to interpret and identify theories of corporate restructuring
CO2 PO2a
with real-world examples
The students will be able to comprehend different approaches to valuation involved in
CO3 PO3a
M & A inluding buyer-seller perspective
Mapped PO
PO 2a: Our graduates will be able to use oral communication for making business presentations.

PO 3a: Our graduates will be able to evaluate ethical dilemmas in business scenarios, considering various perspectives,
stakeholder interests, and potential consequences.

PSO1b: Our graduates will demonstrate the ability to integrate functional business knowledge across domains in a managerial
perspective.
Session Plan
Session Topic/Assignment Reading Methodology
Module I
Overview of corporate restructuring –
1-2 Chapter 2, 3 - SK Flipped Classroom
Financial and operational
restructuring
Forms of corporate restructuring –
expansion, sell offs, corporate Flipped Classroom
3-4 control, changes in ownership Chapter 2, 3 - SK Group Case
structure; Reverse merger and Presentation I
demerger
Module II
Mergers and acquisitions - Concept
Flipped Classroom
and implications; Motives and
5-6 Chapter 2, 3 - SK Group Case
rewards Types of mergers;
Presentation II
horizontal, vertical and conglomerate
merger

Flipped Classroom
Forms of corporate restructuring -
7-8 Chapter 2, 3 - SK Group Case
changes in ownership structure
Presentation III
 Lecture and
Organization/Process of M&As;
9-10 Chapter 2, 3 - SK Group Case
Mergers and value creation
Presentation IV

Theories of M&A, efficiency, Research paper

undervaluation, agency problems, tax discussion and
11-12 Chapter 2, 3 - SK
considerations, market power, Group Case
operating synergy, financial synergy Presentation V

Elon Musk's Twitter

Module III
Deal: Valuation and
Leveraged Buy Outs (LBO) concept Chapter 18 - SK
13-14 Financing of the
and process Motives and implications
Leveraged Buyout
of LBOs
(HBP)

Regulatory framework of LBOs Lecture and

15-16 Employee buy outs, Concept and Chapter 18 - SK Group Case
process; Bankruptcy Presentation VI

Research paper
Takeover defense strategies Financial
discussion and
17-18 Restructuring: Buy-back of shares – Chapter 18 - SK
Group Case
concept and necessity
Presentation VI

Module IV
Valuation of M&A, basic principles
19-20 of valuation, Income approach to Chapter 11, 12 and 13 - SK Practical Illustration
valuation discounted cash flow, steps
in DCF

Market approach – Comparable

company approach, stock and debt
21-22 Chapter 11, 12 and 13 - SK Practical Illustration
approach Asset approach; Synergy
valuation

23-24 Valuation – Exercises Chapter 11, 12 and 13 - SK Practical Illustration

Finance Simulation:
M&A in Wine Country
25-26 Simulation Simulation Guidelines
V2
(HBP)

Module V
Lecture Method, Case
27-28 Legal Aspects of Corporate Chapter 7 - SK
Discussion
Restructuring

Accounting Aspects of Corporate Lecture Method, Case

29-30 Chapter 9 - SK
Restructuring Discussion
 Taxation Aspects of Corporate Lecture Method, Case
31-32 Chapter 7 - SK
Restructuring Discussion

Value creation/destruction through Research paper

33-34 Chapter 7 - SK
M&A- Case-to-case analysis discussion

References/Books

1. Sheeba Kapil, Knawal N. Kapil,, Mergers and Acquisitions, 2nd Edition, Wiley (SK)
2. Mergers and Acquisitions Text and Cases by B Rajesh Kumar (Tata McGraw Hill) - BRK
3. D M DePamphilis, Mergers, Acquisitions and Other Restructuring activities: An Integrated approach to process, tools, cases,
solutions,Academic Press, 2009. (DMP)
4. Robert F Bruner, Applied Mergers and Acquisitions, John Wiley and Sons, 2004.
5. Patrik A Gaughan, Mergers, Acquisitions and Corporate Restructuring, John Wiley and Sons, 2011 (PAG)
Additional Readings
1. MAIN CASE- Elon Musk's Twitter Deal: Valuation and Financing of the Leveraged Buyout, Ivey Publishing
2. Spillover Effect of M&A Announcements on Acquiring Firms’ Rivals: Evidence from India Global Business Review 20(3)
692–707, 2019 © 2019 IMI
3. Bauer, F., & Friesl, M. (2024). Synergy evaluation in mergers and acquisitions: an attention‐based view. Journal of
Management Studies, 61(1), 37-68.

Grading Structure

Sl. No. Evaluation tool Marks CO Assessed Tool for Measurement

1 CAE 1 - Class Based 5 CO 1 Marks
2 CAE 2 - Centralised 15 CO 3 EQ
3 End Semester 60
4 Individual Assignment 10
5 Group Presentation 10 CO 2 Rubrics
Learning & Teaching Activities -
Learning & Teaching Activitiy Session Course Outcomes
As mentioned in
Real-world cases course plan CO2
Long Case Session 13 - 14 CO1
Simulation Session 27 and 28 CO3
Research Paper Discussion Session 11 and 33 CO1
Grading or Evaluation tools other than Examinations

Individual Written Assignment

Each student shall be assigned a specific time-period. For the specified time-period, they will have to collect the mergers &
acquisition news appearing in the news paper. Details about the required submission with regard to the news will be given
during the class.
Group Presentation
Each Group will be assigned once real-time case study alongwith a topic from the course plan. The group presentation shall
cover
type, motivation, parties involved, Financing; Results of restructuring; performance of the companies after merger. Students will
work in groups to analyse real-world case studies dealing with each type of restructuring transaction and make presentations.

Course policies
Please refer student guidelines 2025-24
Assignment Schedule
Date /
Sl.No. Session Assignment/Presentation Due Date/ Session
1 Session 3 Individual Written Assignment Session 10
2 Session 1 Group Presentation Ongoing
Course Requirement
Students are required to come prepared for each session by reading the respective reference material given in this course plan.
Do bring calculator in all the session where valuation of M&A are done