Day 1

Corporate Finance

Prof Edward Altman

• Finance and the Corporation: Planning a Firm’s Capital Structure
• Achieving Company Goals in a World of Uncertainty
• Importance of cash flows and valuation
• Fundamentals of risk analysis
• Company-Bank Relationship: The Credit Risk Factor
• A Primer on Credit Risk Management
• Assessing a Firm’s Strengths and Weaknesses
• Traditional financial statement analysis
• Non-traditional statistical techniques

Managing Corporate Financial Health

Prof Edward Altman
 
• Predicting Financial Health of Emerging Market Companies
• Predicting and Avoiding CorporateDistress: The Z-Score Models
• Other Forecasting Models
• Application to Southeast Asian Firms: Models for Singapore, Malaysia, Thailand and Indonesia
• Financial Forecasting and Managing Credit Risk: A Case Study
• Assessing the current health of the firm
• Firm-bank relations
• Break-out syndicates -- work on company
• case studies
• Discussion of company case studies

Note: Attendees should bring the latest financial statements of their company, and a company they are interested in, to the seminar. Financial calculators or laptops are
also required of all attendees. Try to concentrate on non-financial entities, especially manufacturers.

Day 2

Managing a Financial Turnaround

Prof Edward Altman

• Continue work on company case study
• Managing a Financial Turnaround
• Lessons for successful and unsuccessful firms
• Discussion of Credit Risk case

Financial Restructuring and Capital Structure

Prof Edward Altman

• Revisiting Asian corporate financial health (application to attendee companies)
• Corporate Restructuring
• Asset and liability reorganisation
• Potential for success and failure
• Introducing the leverage restructured firm
• Valuing the private firm
• Management and leveraged buyouts
• Lessons from the 1980’s
• Linking Financial Theory and Practice
• Capital structure theory and practice
• A recipe for the successful leveraged restructuring
• Distressed restructuring for Asian firms
• Lessons from abroad
• The role of the high yield debt markets and distressed investors

Day 3

Corporate Financing Principles

Prof Ian Giddy

• Financing the corporate life cycle
• Measuring the cost of equity
• Measuring the effective cost of debt
• Measuring and optimising the overall cost of capital

Corporate Financing Techniques 

Prof Ian Giddy

• Sources of Equity for Growing Companies

• Pre-IPO financing
• Seed capital/Angel money
• Private Equity
• Venture Capital
• Strategic partnerships/joint ventures
• Recapitalisation: The Asian Challenge
• Debt/equity swaps with lenders
• When and why they apply
• How to structure them
• Restricted-rights share offerings
• Minority share issues
• Takeovers by domestic or foreign companies
• Sources of New Debt
• Advantages and disadvantages of bank debt
• Growing domestic bond markets
• Eurobond and foreign bond markets
• Private placements
• Measuring the effective cost of financing
• A roadmap for financing choices

Risk Management

Prof Ian Giddy

• Managing Financial Risk and Designing Debt
• Measuring and managing financial risks such as currency or interest rate fluctuations
• Tools such as sensitivity analysis and value at risk (VAR)
• Economic exposure to market risks
• Control exposure to market risk and build "financial resiliency"
• Use of debt and derivatives to reduce availability risk, interest rate risk and currency exposure
• Debt design and market risks
• Long term vs short term
• Fixed vs floating
• Currency of denomination
• Reconfigure existing debt with derivatives
• Futures, forwards, swaps and options
• A roadmap for corporate exposure diagnostics and debt design

Day 4

Structured Finance: Hybrid and Asset-Backed Securities

Prof Ian Giddy


• Hybrid and Quasi-equity Financings
• Quasi-equity debt financing such as warrants or convertibles
• When is a specially structured hybrid security the best solution?
• How do indexed securities work and what are the three key reasons that companies use them?
• Who uses commodity-linked bonds and why?
• How are hybrids valued and priced?
• Swap Financing Techniques
• The mechanics of financing with interest rate and currency swaps
• The all-in cost of swapped debt
• Using and pricing caps, collars, and swaptions
• Asset-Based Financing Techniques
• Mechanics of asset-backed securitisation
• How asset securitisation can give access to new sources of funds
• Cost-benefit analysis
• Legal, tax, accounting and regulatory issues
• Application to South-East Asia

Day 5

Valuation of the Business

Prof Ian Giddy
 
• Princlples of valuation
• Asset-based methods
• Comparables and ratios
• Discounted present value methods
• Understanding valuation of free cash flow
• Hands-on applications of valuation techniques
  
• Application of alternative valuation methods such as asset values, comparables and discounted present value
• Value of acquiring a strategic option to pre-empt competitors
• Value of key assets, such as a franchise, management and employee teams and/or a customer base
• Application to stable-growth companies
• Application to high-growth, high-risk companies
• Applications in South-East Asia

Mergers, Acquisitions, and Divestitures

Prof Ian Giddy
 
• Mergers and Acquisitions
• Why some succeed and many fail
• Who gains? Who loses?
• How to pay and how much to pay?
• Role of divestitures and LBOs
• In-depth case study
• Corporate Valuation in Mergers, Acquisitions, Divestitures and Ownership Restructurings
• How to estimate the value of an acquisition target
• Stand-alone value
• Value with prospective synergies
• Added value from obtaining management control and/or ownership
• Creating Post-merger Value
• Top-line synergies such as cross-selling and gaining market power
• Bottom-line synergies such as economies of scale
• Corporate restructuring such as divestitures
• Financial engineering such as improving the capital structure
An Integrated Framework for Creating Corporate Value from the CFO’s Standpoint

• Recap of the Seminar