Creating Value Through Corporate Restructuring: Case Studies in Bankruptcies, Buyouts, and Breakups

by Stuart C. Gilson

Book Overview

A collection of case studies illustrates real-world techniques, implementation, and strategies on corporate restructuring Over the period 1981-1998, public companies with combined assets of over half a trillion dollars filed for Chapter 11 bankruptcy. Over the same period, over 400 public companies underwent corporate spin-offs, divesting businesses valued at more than $250 billion. Each of these companies, and all of these dollars, were in some way...

• Format: Hardcover
• Language: English
• ISBN: 0471405590
• ISBN13: 9780471405597
• Release Date: July 2001
• Publisher: Wiley
• Length: 528 Pages
• Weight: 2.17 lbs.
• Dimensions: 1.5" x 6.6" x 9.0"

Customer Reviews

Absolutely a must read

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.

Valuable Reading for the Seasoned Professional and Novice

Having spent most of the last 20 years in the financial/corporate restructuring world, I have continued to search for useful and interesting literature on the subject. Having read many of Professor Gilson's prior published papers, combined with endorsements for the book from many of the "Deans" of the restructuring world, the "purchase decsion" was an easy one. I was not disappointed!The book is useful and refreshing for restructuring industry participants at all levels from seasoned executives to novices. I have drawn on the concepts and problems outlined in a variety of situations, including brainstorming about particularly difficult issues concering client matters to assisting in the development of objectives for some of my firm's internal training materials.I found the chapter on "Investing in Disressed Situations" combined with the two appendices on technical analyses (some of which I had previously read as journal papers) to be excellent summaries. These would prove useful to any reader and especially helpful to newer participants or students of financial restructuring.Coporate Restructuring is designed as a case study text book. To some, including myself having received an MBA from the University of Chicago, this approach can be somewhat awkward. The advantage of the approach, especialy in restructuring, is that it does emulate the real world situation faced by turnaround/crisis management practitioners and investment bankers. The devolpment of the "theory" or "solution" is left to the reader. This is the correct approach since each restructuring case tends to be "unique and hand crafted"---"cook book" approaches can lead to incorrect answers and disastrous results for clients.Coporate Restructuring is a "must read" for students of restructuring. It belongs in the library of all practitioners, principals and agents, in this area.

An Important Book

Gilson gives an up-close-and-personal view of how corporate reorganization works. By using case studies, he makes the topics come alive. At the same time that he entertains, he teaches important lessons about dealing with substantial business setbacks. The book is full of interesting ideas. Difficult concepts are taught not as an abstraction, but in the context of solving a hard problem. Gilson offers a sophisticated analysis that is always clear and often entertaining. A must-read for serious business people.

The only reference guide for the restructuring/turnaround

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.

The SEMINAL WORK on Creating Value Through Restructuring

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.