Creating Value Through Corporate Restructuring: Case Studies in Bankruptcies, Buyouts, and Breakups
March 9th, 2010
Posted in Debt And Consolidation | 
Tags: Bankruptcies, Breakups, Buyouts, Case, Corporate, Creating, Restructuring, Studies, Through, Value
This is a very good case book, complete with intricate case studies illustrating numerous aspects of challenges often faced in restructuring in bankruptcy. However, the book assumes a level of knowledge about M&A concepts that many readers may not have. Consequently, I would recommend using this book in conjunction with another excellent text by DePamphilis entitled Mergers and Acquisitions: Integrated Approach. There are two editions. The second edition is more complete and up to date. It also tackles some of the problems illustrated in this book.
Rating: 4 / 5
This book is a complete waste of time. It is just a collection of case studies bundled together and resold. There is no analysis done. The cases are merely reprinted word for word from the original HBS cases. There are three short intros to the different sections, but once again nothing useful. Great marketing ploy, lousy book.
Rating: 1 / 5
This is an excellent book on understanding the framework used to analyze corporate restructurings and how corporate restructurings are playing an increasingly important role in creating shareholder value. Using recent case studies from various industries, Dr. Gilson effectively illustrates how companies restructure debt, contracts with shareholders, and contracts with employees. Topics such as Chapter 11 bankruptcy protection, out-of-court restructurings, corporate spin-offs, equity carve-outs, tracking stocks, and layoffs are covered. The case study method is extremely helpful in providing the ever important management’s viewpoint of the restructuring process. With input from executives, investment bankers, attorneys, investors, and other key participants, readers have access to the inside scoop of various transactions that is generally not available to the public. Based on my experience executing various “Corporate Clarity” transactions with the M&A group at J.P. Morgan, I can say Dr. Gilson has done a fantastic job explaining why companies restructure and how it impacts market valuation. This book is a must read for anyone seriously interested in understanding the rationale behind mergers and acquisitions from a strategic, financial, and legal perspective.
Rating: 5 / 5
This is an extremely important book that nimbly moves where no one has gone before to explain the value creation through corporate restructuring and turnaround. It does so by complementing real world case studies with well-focused introductions of theoretical concepts, analytical tools, and legal/tax framework. As a restructuring consultant, I found that the book contains much useful practical information on the restructuring process that turnaround practitioners can find helpful in their practice. The case studies themselves include useful applied, institutional information about how various types of restructuring are done, what motivates restructuring, what different restructuring options are available for dealing with a particular problem or challenge, etc. I find that it goes far beyond the legal framework of bankruptcy resolution to show how conflicting stakeholders claims play to create or destroy value. The book undoubtely breaks new ground in explaining the restructuring strategies and processes. I recommended the book to many of my colleagues in reorganization and restructuring services as I believe it shoud become essential reading for students, creditors, debtors and consultants as they face the complex operational, legal and financial challenges of distressed situations. The price: I found it steep at first glance but then I changed my mind when I compared it to other professional books in the industry.
Rating: 5 / 5
Without question, Professor Gilson’s book is the SEMINAL WORK on creating value through corporate restructuring. It is essentially the Graham & Dodd “Security Analysis” of the corporate restructuring sector. A “must read” on corporate restructuring for investors, professionals, executives, managers, and students. The benchmark against which any other text in this area should be measured. Wealth of practical, yet sophisticated information about real world “how to’s” of corporate restructuring. Harvard B-School case study format. The Harvard case studies are carefully designed to provoke discussion and challenge readers to consider the options for restructuring companies facing potentially “life-threatening” business challenges or crises. These companies have actually been through various restructurings (bankruptcy, spin-offs, tracking stocks, mergers, layoffs, etc.); insight comes from real companies and their real challenges. Definitely a useful textbook in any undergraduate or MBA level course addressing these topics (topics unfortunately mostly ignored by writers and universities until now.) Excellent work describing various restructuring processes. For example, Professor Gilson describes in detail Chapter 11 bankruptcy reorganization tactics such as tax issues to be addressed prior to spinning off a division, tracking stock alternatives, and business analysis associated with employee downsizing. Valuable essays on investing in debt of troubled companies and valuing companies during restructuring. Useful introductory chapters summarize case study lessons and list relevant research on related topics. Japonica Partners has been active in the restructuring area since the late ’80s, and has created over $2 billion in value for our investors. We’ve found no other resource in this sector that comes close to this book. Many of our professional team members have already found value-added in its pages. Perhaps Professor Gilson will follow up with a second book (for instructors only) providing a transaction analysis on the evolution of each case.
Rating: 5 / 5