Corporate Restructuring Practice Exam

About Corporate Restructuring
Corporate restructuring is an action taken by the corporate entity to modify its capital structure or its operations significantly. Generally, corporate restructuring happens when a corporate entity is experiencing significant problems and is in financial jeopardy.

 The process of corporate restructuring is considered very important to eliminate the entire financial crisis and enhance the company’s performance. The management of concerned corporate entity facing the financial crunches hires a financial and legal expert for advisory and assistance in the negotiation and the transaction deals. Usually, the concerned entity may look at debt financing, operations reduction, any portion of the company to interested investors. In addition to this, the need for a corporate restructuring arises due to the change in the ownership structure of a company. Such change in the ownership structure of the company might be due to the takeover, merger, adverse economic conditions, adverse changes in business such as buyouts, bankruptcy, lack of integration between the divisions, over employed personnel, etc.

Why is Corporate restructuring important?
Corporate restructuring can be driven by a need for change in the organizational structure or business model of a company, or it can be driven by the necessity to make financial adjustments to its assets and liabilities. Frequently, it involves both. To merge with another company. To decrease or consolidate debt.

Companies Restructure
•    To reduce costs.
•    To concentrate on key products or accounts.
•    To incorporate new technology.
•    To make better use of talent.
•    To improve competitive advantage.
•    To spin off a subsidiary company.
•    To merge with another company.
•    To decrease or consolidate debt.

Who should take the Corporate Restructuring Exam?
•    Business professionals
•    Business owners
•    Entrepreneurs
•    Business managers and senior executives
•    Business consultants
•    Students

Knowledge and Skills required for the Corporate Restructuring

Specific skills are needed to excel in career of corporate restructuring which includes analytical bent of mind and quick learning skills.

Corporate Restructuring Practice Exam Objectives

Corporate Restructuring exam focuses on assessing your skills and knowledge in corporate failure, divestitures, valuation and taxation.

Corporate Restructuring Practice Exam Pre-requisite

There are no prerequisites for the Corporate Restructuring exam.

Corporate Restructuring Certification Course Outline
1. Introduction to Corporate Restructuring
1.1 Pathways for Takeovers and Mergers
1.2 Forms of Business Growth    
1.3 Sources of Finance for Business Growth    

2. Corporate Failures
2.1 Business Failure and Reorganization    
2.2 Symptoms of Bankruptcy or Failure
    
3. The Physiology of Business Failure    
3.1 Types of Business Failure    
3.2 To Reorganize or Liquidate    
3.3 Informal Alternatives for Failing Business    

4. Dynamics of Restructuring    

5. Historical Background from Indian perspective    
5.1 Present Scenario    
5.2 Global Scenario    
5.3 National Scenario    

6. Corporate Strategy
6.1 What we mean by strategies    
6.2 Levels of Strategies    
6.3 Strategic Planning    

7. Competitive Advantage and Core Competencies    
7.1 Strategy Formulation and Execution    
7.2 Corporate Restructuring Strategies    
7.3 Motives for Restructuring    

8. Provisions under various Indian laws enabling restructuring    
8.1 Provisions under Companies Act of     
8.2 Amalgamation under the Income-Tax Act,     
8.3 Demerger of Companies under Income-Tax Act,     
8.4 Accounting Standards        

9. Divestitures
9.1 Financial Evaluation of a Divestiture

10. De-Mergers
10.1 Difference between Demerger and Reconstruction    
10.2 Tax Aspects of Demergers

11. Merger and Amalgamation    
11.1 Concept of Merger and Amalgamation    
11.2 Merger/Absorption

12. Reasons for Merger and Amalgamation    
12.1 Improving Economies of Scale

13. Categories of Merger    
13.1 Horizontal Merger    
13.2 Vertical Merger    
13.3 Conglomerate Merger    
13.4 Mergers and Acquisitions    
13.5 Types of Mergers    
13.6 Other Motives for Merger

14. The Merger Negotiation Process    
14.1 Tender Offers    
14.2 Valuing the target Company    
14.3 Terms of Mergers    
14.4 Illustration of the Problem of Merger Terms    
14.5 Factors Dominating Situations

15. Cost of Merger    
15.1 Estimating the Cost of a Merger    
15.2 The Consolidation

16. Methods of Merger/Amalgamation    
16.1 Preliminary Steps in Mergers    
16.2 Comparative Cost and Returns    
16.3 Filing of certified copy of Court’s order with RO    
16.4 Determination of Cut off Date

17. Procedural Aspects under Various Laws    
17.1 Procedural Aspects, Including Documentation for Merger/ Amalgamation    
17.2 Convening a Board Meeting    
17.3 Holding Meeting(s) as per Court’s Direction

18. Economic Aspects of Mergers etc
18.1 Economic Considerations

19. Merger Management    
19.1 Strategic Management of Mergers
19.2 Accounting Aspects of Merger and Amalgamation
19.3 The Pooling of Interest Method

20. Financial Aspects of Merger/Amalgamation
20.1 Financial Aspects of Merger/ Amalgamation including Valuation of Shares
20.2 Methods of Valuation of Shares

21. Taxation Aspects
21.1 Taxation Aspects of Mergers and Amalgamations    
21.2 Sale in the Course of Winding up    
21.3 The Human Aspects of Mergers and Amalgamations

22. Funding the Merger Process    
22.1 Funding of Mergers

23. Process of Funding    
23.1 Funding through Equity Share Capital    
23.2 Funding through Employees Stock Option Scheme    
23.3 Funding through Financial Institutions and Banks    
23.4 Funding through Rehabilitation Finance    
23.5 Funding through Public Deposits    

24. Valuation of Shares and Business    
24.1 Need and Purpose    
24.2 Factors Influencing Valuation    
24.3 Merger Negotiations
    
25. DCF Method
25.1 Discounted Cash Flows
25.2 Discounted Cash flow Valuation Method    
25.3 Statutory Valuation

26. Other Models    

27. Post Merger Re-Organization

28. Management of Financial Resources
28.1 Post merger success and valuation

29.  Measuring Post Merger Efficiency
29.1 Criteria of a successful merger
29.2 Measuring Key Indicators
29.3 Merger & Acquisition Trend
29.4 Funding
29.5 Need for Financial Restructuring

30. The Agile Organisation
30.1 Central Management

31. Takeover
31.1 Meaning & Concept of Takeover

32. Bailout Takeovers

33. Economic Aspect of Takeover
33.1 Financial & Economic Aspect of Takeover

34. Alliances

35. Implementing & Managing the Alliance
35.1 Evaluating an Alliance

Exam Format and Information
Certification name – Corporate Restructuring Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199