Intense, real-world, memorable - gamified simulation training
Intense, real-world, memorable - gamified simulation training
Financial Restructuring Simulation immerses participants in the process of restructuring a financially distressed company. They assume roles negotiating between creditors and equity holders.
Debt restructuring instruments: standstill agreements, haircuts, subordination, interest adjustments
Equity restructuring: capital increases, shareholder loan adjustments, mezzanine financing
Creditor negotiations and consolidation
Managing financial distress and liquidity issues
Impact of operational and financial restructuring on company value
In- and out-of-court restructuring processes
Stakeholder alignment and conflict resolution
In the simulation, participants will:
Analyze distressed company financials and creditor claims
Negotiate terms with creditors and equity holders to restructure debt and capital
Develop and propose restructuring plans balancing risk and stakeholder interests
Manage liquidity and operational constraints in restructuring scenarios
Collaborate within teams assuming different roles (creditors, equity owners, advisors)
Communicate outcomes via presentations, memos, or negotiation updates
Adapt strategies in response to dynamic scenario developments
Understand financial restructuring mechanisms and their applications
Apply negotiation tactics within creditor and equity holder dynamics
Manage financial and operational risks in distressed situations
Develop problem-solving skills in high-pressure decision-making environments
Communicate complex restructuring strategies effectively to stakeholders
Recognize legal and regulatory aspects influencing restructuring outcomes
Build confidence in managing corporate financial crises through simulations
1. Receive a Scenario or Brief Participants receive a company profile along with market data, financials, and shareholder expectations.
2. Analyze the Situation Participants assess the company's valuation, earnings, cash flow, capital structure, and market conditions to determine the feasibility and timing of share repurchases.
3. Make Strategic Repurchase Decisions Decisions include repurchase method (open market, tender offer, or accelerated buyback), timing, volume, financing, and communication strategy.
4. Collaborate Across Roles Teams may include financial managers, investor relations officers, and analysts who negotiate and align priorities.
5. Communicate Outcomes Participants prepare and present shareholder communications, explaining repurchase rationale and expected impact.
6. Review and Reflect Simulation feedback covers financial performance, market reaction, capital structure outcomes, and stakeholder communication effectiveness. Decisions and strategies evolve across simulation rounds.
What is the core objective of this financial restructuring simulation? The core objective is to provide a hands-on, immersive experience in navigating a company through severe financial distress. You will learn to analyze a company on the brink of failure, develop a viable turnaround plan, and negotiate with key stakeholders to avoid liquidation and engineer a financial recovery.
What types of financial distress scenarios will we encounter? The simulation features realistic cases that may include a company facing a looming debt covenant breach, a "covenant-lite" borrower with collapsing cash flows, a business struggling with an over-leveraged balance sheet from an LBO, or a firm needing an operational turnaround to survive.
Do I need a financial background to understand the restructuring process? No prior financial knowledge is required. The simulation is designed for finance and business students.
How are the negotiations structured? The simulation progresses through structured negotiation rounds. Teams must analyze their respective positions, develop a strategy, and negotiate terms for a debt-for-equity swap, new money injection, or a pre-packaged bankruptcy plan. The goal is to reach a consensual agreement that maximizes value for your stakeholder while saving the company.
Is this simulation only relevant for those wanting to be restructuring advisors? Not at all. The skills are highly transferable. This simulation is crucial for anyone targeting careers in investment banking (especially leveraged finance), private equity, credit analysis, distressed debt investing, corporate finance (CFO track), or hedge funds. It provides unparalleled insight into capital structure under pressure.
How is the winner or best performance determined? Performance is not based on a single "win," but on a holistic assessment. Teams are graded on the analytical rigor of their financial models, the strategic coherence of their plan, their negotiation skills, and the final outcome they achieve relative to their stakeholder's best interests. A team that fights for and secures favorable terms in a sub-optimal overall deal can score higher than a team that agrees to a poor deal quickly.
Strategic selection of repurchase methods and timing aligned with market conditions and company goals Financial analysis and assessment of share repurchase impact on earnings per share (EPS), return on equity (ROE), and valuation metrics
Effective capital structure management balancing debt, equity, and liquidity
Responsiveness to market signals and shareholder expectations
Clear and persuasive communication to shareholders and stakeholders regarding repurchase rationale and benefits
Collaboration and decision-making under realistic financial constraints and uncertainty
Adaptability in adjusting repurchase strategies based on market developments and regulatory considerations
Join this 20-minute webinar, followed by a Q&A session, to immerse yourself in the simulation.
or
Book a 15-minute Zoom demo with one of our experts to explore how the simulation can benefit you.
