Corporate Restructuring. EMP 51 Timothy A. Thompson. What is restructuring?. 1980’s: corporate restructuring identified with leveraged buyouts, LBO’s, LCO’s More generally, however, divestitures, carve out IPO’s, spin offs, etc.
Timothy A. Thompson
Slightly modified from the McKinsey book.
Current Market Value
Optimized firm value
Value status quo
Incentives management with VBM
Value with financial
Value with internal improvements
Value with improvements
Financial engineering: leverage, dual class stock, carve outs, tracking stock, employee ownership, debt restructuring
Divestiture activity, spin offs