- resources in finance

Euromoney Training

Advanced Corporate Finance
Prof. Ian Giddy
New York University

Advanced Corporate Finance involves the effective use of analytical techniques, new instruments, and financial restructuring to increase the value of a company.

The Workshop

This workshop will be taught around five major topics employing in-depth group work on case studies, financial analysis and deal structuring. The focus will be on identifying situations that call for nonstandard corporate finance solutions, the valuation of businesses, and the design and pricing of the appropriate financing instruments. Examples of such situations include debt restructuring, recapitalizations, IPOs, private equity and management buyouts, divestitures and acquisitions.

We review the key decisions - investment, financing and risk management - that contribute to shareholder value. Running through the key computations and numbers of corporate finance, we discover the assumptions behind common models and ratios used in valuation of a company, in mergers and and other forms of corporate financial restructuring. We apply this to several case studies, revealing also how an acquisition, divestiture or restructuring can alter the value of a company -- for better or for worse.

One goal for participants is to develop a check list or rapid overview of the key criteria in a structured finance deal, to consider when analysing a proposal, so as to grasp the main strengths and risks of each structure after an initial rapid analysis.

The workshop will include case studies of actual corporations and their financings, as well as hands-on exercises, and will give participants the opportunity to demonstrate their understanding of deals through presentations and discussions. 

Who Should Attend?

The seminar is of relevance to both corporations and  financial service professionals: corporate finance officers, commercial and investment bankers, securities analysts; investment officers; corporate treasurers and other individuals whose professional future may be enhanced by an understanding of advanced corporate finance techniques.


Participants will be provided with a package of materials useful to the structuring and analysis of corporate financing and restructuring techniques, including pertinent articles, rating agency reports and sample spreadsheets from actual deals done in Europe and elsewhere.

Features of the Course

What can delegates expect to gain from this course?

  • Learn or update fundamental corporate finance skillsIdentify the key value drivers as well as the vulnerabilities of a business Master methods to calculate the cost of capital
  • Apply corporate valuation models, including asset-based, comparables and cash flow methods
  • Improve any company's value by reassessing the optimal capital structure
  • Measure and manage financial risks using derivatives and financing techniques
  • Understand the use of credit derivatives to manage credit risk
  • Apply advanced financing techniques, including securitization, leveraged and mezzanine finance
  • Be able to identify appropriate valuation techniques for unusual situations such as distress, synergistic mergers, and going private
  • Apply the principles of corporate finance in both developing and developed markets

Course Outline


Day 1 The Job of the CFO
  • Why finance matters -- and why most companies are undervalued
  • The 5 principles of corporate finance
  • The corporate value drivers, and how to change them
  • Measuring value: implementing the free cash flow approach
  • Valuing a company at the equity level versus whole-firm value
  • How business risk combined with financial risk influences investors' return expectations
  • Leverage: the good, the bad and the ugly
  • Case study: Autolinks. Delegates evaluate the business and financial risk of this Finnish private company, and how it impacts the company's financing.
Value Creation Through Corporate Financing Decisions
  • Methods of Effective Cost Analysis: how to measure the cost of debt, cost of equity, and weighted-average cost of capital
  • Adjusting the costs of debt and equity for leverage
  • Synthetic ratings and debt pricing
  • Corporate taxation and capital structure
  • Finding the optimal capital structure: debt, equity or mezzanine?
  • Case study: Oracle. Delegates compute the effective cost of capital for a company with various degrees of leverage, and consider how leverage fits in with the company's business and financial strategy.
  • Using debt and derivatives to manage financial risks
  • Structured finance techniques: when it makes sense to use them
  • Case study: A Day in the Life. Delegates compare the techniques and effective cost of various structured bond issues.

Case Studies
A Day in the Life

Warren's World
Notes on cost of capital and capital structure .

Industry betas

Oracle solution

Day 2 

Valuing the Business
  • Valuation as a tool to discover value-drivers and restructuring opportunities
  • Asset-based valuation
  • Using comparables
  • Discounted cash flow analysis
  • Case study: Active Generation. The owner of a private fitness-center network aims to sell to a strategic buyer, but wants to get the best price. What method should he use to value the business?

Applying Valuation Methods to Mergers, Acquisitions and Divestitures
  • Corporate M&A strategy: how to win, how to lose
  • Sources of value gains from acquisitions
  • Restructuring checklist
  • Total cost computation
  • Identification and valuation of operational synergies
  • Identification and valuation of control gains
  • Case study: Optika. A spreadsheet-based analysis of the stand-alone and merged value of two German optical companies helps to show how a constant-growth model can help focus on the drivers of the company's value.
  • Case study: MTC-Celtel. Merger synergy analysis.
  • Break-up valuation
  • Case study: Pinault-Printemps-Redoute Delegates learn how to perform a before-and-after divestiture analysis


Case Studies
Active Generation

Methods of Corporate Valuation

Valuation-related spreadsheets
Active Generation spreadsheet
Celtel solution

Day 3

Corporate Financial Restructuring
  • What is corporate financial restructuring?
  • Applying the value drivers to corporate restructuring
  • Organizational vs financial restructuring
  • Leveraged build-ups and leveraged recapitalization
  • Case study: RoadShow. Delegates consider the method of empowerment ownership restructuring proposed by this company, from the point of view of outside shareholders as well as managment.
  • Financial distress, bankruptcy and reorganization
  • Debt-for-equity swaps and other forms of distress-driven financial restructuring
  • Case study: Deaths-R-Us. This company is suffering the burden of excessive debt. Delegates work out how banks, shareholders and management can restructure the debt so as to restore the company to financial health.

IPOs and LBOs


Case Studies
IPO of Telkom
Telkom ADR
Plato Data

Corporate Financial Restructuring

Debt restructuring
Truck Toys
Plato Data spreadsheet
Corporate Finance and Debt Capacity Tables

About the Instructor

Ian Giddy has taught finance at NYU, Columbia, Wharton, Chicago and in over forty countries abroad for the past two decades. He was Director of International Fixed Income Research at Drexel Burnham Lambert from 1986 to 1989. The author of more than fifty articles on international finance, he has served at the International Monetary Fund and the U.S. Treasury and has been a consultant with numerous corporations and financial institutions in the U.S. and abroad. As a banker and consultant he has been involved in the growth of the global capital market in the USA, Europe and Asia. He is the author or co-author of The International Money Market, The Handbook of International Finance, Cases in International Finance, Global Financial Markets, Asset Securitization in Asia and The Hudson River Watertrail Guide. He and his wife are the founders of Cloudbridge, a private nature reserve in Costa Rica. | | | | contact
Copyright ©2006 Ian Giddy. All rights reserved.