Course Detail

Deal Structuring and Financial Reporting Implications (30122)

Course Description by Faculty

  • Sapra, Haresh
  • Content

    In previous accounting/financial analysis courses, you obtained skills important to understanding how a firm tracks its day-to-day operations, and how its activities translate into periodic financial statements. Outside of 'normal' business activities, firms periodically undergo dramatic transformations via acquisitions, divestitures, restructurings, or bankruptcy. This course builds on knowledge acquired from other Booth courses and provides you with tools to better understand the financial reporting, tax, and legal implications of structuring complex deals.

    This course is essential for investment bankers, consultants, restructuring and turnaround specialists, private equity professionals, corporate development/internal M&A professionals and entrepreneurs who want to have a competitive advantage by understanding how financial reporting, tax and legal considerations affect deal structures.  

    You will benefit greatly from this course if you wish to acquire tools to:

    • understand the financial reporting, tax/legal implications of structuring complex deals.
    • build merger and restructuring models to evaluate various deal structures;
    • work for C-level roles (CEO, CFO, SVPs/GMs) and to serve on boards of major corporations as it provides an executive viewpoint on financial reporting and investor messaging implications for significant business investments.

    Main topics to be covered include: (1) Financial Reporting and Tax implications of influence and control situations; (2) Financial reporting and Tax Implications of M&A deals; (3) Financial reporting and tax implications for restructuring via sales, spin-offs, and equity carve-outs; (4) Financial reporting implications and Tax implications for distressed firms operating in bankruptcy and emerging from bankruptcy (5) Building Merger Consequences and Restructuring models to evaluate the feasibility of deals.

  • Prerequisites

    This course should be viewed as capstone course, and as such, students should have both a solid foundation in financial reporting and corporate finance topics. While only BUS 30000 is a strict prerequisite, in order to be successful in the course, students are highly encouraged to take either Accounting and Financial Analysis (BUS 30116), and/or Financial Statement Analysis (BUS 30000) and /or corporate finance (BUS 35200) before taking this course. Students are expected to be proficient in Microsoft Excel and should enjoy building financial models.

    To gauge whether you have a solid foundation in financial reporting, I have posted a self-assessment test that is available at the following link. Note that you are not expected to ace this test; however, but if you get many of the transactions wrong, you should not take this course. You may consult outside material, but you should work on the test individually and not discuss it with others.

    Restrictions
    • Strict Prerequisite

  • Materials
    Course handouts and course readings posted on Canvas.
  • Grades
    The course grade will be determined by (1) an in-class midterm exam (2) two individual assignments, (3) an M&A group project and (4) a (take home) final exam that involves a restructuring project. The midterm exam will be open notes. The exam, assignments and projects will revolve around recent deals. Cannot be taken pass/fail. Absolutely no auditors. Attendance at first class session is mandatory.
    Grades
    • Mandatory attendance week 1

    • Allow Provisional Grades (For joint degree and non-Booth students only)

    • Early Final Grades (For joint degree and non-Booth students only)

    Restrictions
    • No auditors

    • No pass/fail grades

  • Syllabus
  • Winter 2023Section: 30122-01T 1:30PM-4:30PMHarper CenterC02In-Person Only
    New Course
Description and/or course criteria last updated: November 1 2022