Divestitures and Corporate Restructuring

This module deals with the financial implications of the main divestiture and restructuring options available to a firm as an ongoing concern: divestiture (public or private, total or partial), spin-off / split-up, split-off and equity carve-outs. We focus on the financial modeling aspect of the analysis, building a simple and clear model for every individual option, and illustrating the related accounting implications. The financial modeling also incorporates possible adjustments to the capital structure of the business being sold/restructured.

Key topics:

• Overview of divestiture and restructuring alternatives available to firms
  • Options available
  • Reasons to restructure/divest
  • Main issues
• Financial modeling: balance sheet impact and EPS calculation
  • Divestiture
  • Spin off or split-up
  • Split off
  • Equity carve-out
• Adjusting the capital structure of the business to be divested / restructured
• Shortcut way to analyze the EPS impact of the divestiture