Prof Ian Giddy on Corporate Relationship Management

Managing the Relationship

The Client Problem-Solving Approach
The Tools of Adding Value
Capital Structure and Managing Financial Risk
Acquisition-Related Funding Opportunities
Alternative Financing Techniques -- Applying the Bank's Resources

Instructor
Ian Giddy has taught finance at NYU, Columbia, Wharton, Chicago and in 35+ countries abroad for the past three 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 application of applied corporate finance 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.

Relationship Management
and Corporate Finance
for Corporate Bankers

Prof. Ian Giddy
New York University

OVERVIEW

This seminar is designed for a broad range of relationship managers in banks, and is intended to teach participants how to expand their bank’s financing, risk management and advisory services for corporate clients.

Summary

Using the Tools of Corporate Finance to Identify Client Needs
Relationship Management Applied to Corporate Finance Case Studies
Using the Bank’s Resources to Solve Client Problems

SCHEDULE

Part 1

Using the Tools of Corporate Finance to Identify Client Needs

The Client Problem-Solving Approach

Life cycle financing
Financial restructuring
Risk management
Valuation as a tool of relationship management
The value-drivers

Case study: Autolinks

What are the value-drivers for this Finnish company? From a corporate finance perspective, what would you advise the client?

Capital Structure and Risk Management

Is the client leaving money on the table?
How can cost-of-capital and capital-structure analysis help?
Does the company’s capital structure match its business risk?
How can the form of debt match the company’s financial risks?
Financing with derivatives
A roadmap for corporate funding choices

Case study: Liberty Travel

Liberty Travel needs seasonal financing, and is considering several alternative loan structures as well as how to hedge their risks. What makes most sense for the client and the bank?

Part 2

Using the Bank’s Resources to Solve Client Problems

Financing Resources

Exploiting debt-capacity opportunities
What debt financing techniques are available in today's banking and capital markets?
How can clients use syndicated loans, asset-backed securities, mezzanine finance, private equity and other forms of financing for growth?
When does a leveraged recapitalization make sense?

Case study: Spacemakers of Kuwait

Spacemakers, a client of your bank, needs additional financing. The CEO has invited you to discuss availability and pricing. What makes most sense for the client and the bank?

Acquisition opportunities

How can valuation analysis help a customer identify M&A and LBO opportunities?
Leveraged and merger synergies
Financing the acquisition
Exit choices
Alternative financing techniques – applying the bank’s resources

Case study: Financing the Cap des Biches Acquisition

A client of the bank is soliciting proposals to arrange the financing of an international acquisition. Groups will work on structuring a financing package. In doing so, they will consider what the bank has to offer, costs to the client and profitability to the bank, risk management aspects, and ancillary business stemming from the deal.

Summary and next steps