At completion, trainees will have developed a 3-statement bankruptcy model from scratch and performed valuation and recovery analyses.
Using the Borders bankruptcy as our primary case study, we begin with an overview of the restructuring and bankruptcy framework. Then we will learn to build an advanced bankruptcy model from scratch, incorporating bankruptcy specific elements like DIP financing, the creation of liabilities subject to compromise, working capital drivers, cancellation of debt income, and Fresh Start accounting. We conclude the course with valuation analysis and a recovery analysis, where we will layer various valuation scenarios onto the model to analyze possible recoveries to the various creditors.
What You Will Learn
Model some of the most challenging aspects of a bankruptcy, including:
- Working capital reclassifications such as critical vendors/AP
- DIP financing, borrowing base and availability calculations, adequate protection payments
- Balance sheet roll-forward schedules that maintain a consistent link structure to the cash flow statement and increase transparency
- Fees, rejection claims and CODI
- Model recoveries at various operating scenarios
- Construction of a recovery waterfall that can accommodate scenarios that deviate from the absolute priority rule
- Using conditional formatting and Excel’s native date formulas to sensitize for different filing and emergence date scenarios
- Avoiding circular references in the model while maintaining model integrity
- Incorporating best practices for error-proofing, auditing, and model efficiency
- Understanding how Fresh Start Accounting affects the model
- Working capital reclassifications, such as critical vendors/AP
Wall Street Prep's Restructuring Modeling course is used at top financial institutions and business schools.
Modeling the DIP Revolver
Bankruptcy Model Sample (No Formulas)
Step-By-Step Modeling Instruction
The Restructuring Modeling Course delivers step-by-step lessons through videos, readings, ready-to-use restructuring financial and valuation models and exercises using a real case study.
Real World "On the Job" Investment Banking Training
The Restructuring Modeling self-study course bridges the gap between academics and the real world to equip trainees with the practical financial skill set needed to succeed on the job. The program utilizes a case study format, as students follow their tutorial guide alongside Excel model templates, and are directed to the appropriate external documents (SEC filings, research reports, etc.) in order to build real Restructuring models the way it's done on the job.
Upon enrollment, students gain 24 month free and unlimited access to Wall Street Prep's Online Support Center, where they receive answers to questions, free downloads, and important updates from a support staff comprised entirely of experienced former investment bankers
Macabacus Excel Plugin
Free access to Macabacus, all-in-one suite of time-saving tools designed for people who build financial models in Excel. Use keyboard shortcuts for common number formats, to cycle rapidly through different font and color schemes and to navigate a formula's inputs across worksheets and workbooks. Easily understand long formulas with the powerful ‘Precedents’ and ‘Dependents’ Tool, and much more. This 6-month free access is for the full version of Macabacus that also includes essential tools for Powerpoint and Word!
This course does not assume a prior background in Restructuring Modeling. However, it assumes an introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement) and proficiency in Excel. Students with no prior background in Accounting should enroll in the Accounting Crash Course. Students with limited experience using Excel should enroll in the Excel Crash Course.
- Bankruptcy/restructuring industry primer
- Bankruptcy overview
- Imputing asset values and measuring insolvency from market pricing of debt and equity
- The importance and limitation of valuation methodologies like DCF and Comps in restructuring
- Out of court restructuring process
- In court restructuring process
- Automatic Stay and Adequate Protection
- Cash Collateral and DIP Financing
- Restructuring Leases & Executory Contracts
- Fraudulent Conveyance & Preference Actions
- Plan of Reorg & Disclosure Statement and Cram Down Provisions
- The Absolute Priority Rule
- Case study modeling and valuation
- Building a fully integrated three statement bankruptcy model
- Master modeling mechanics that dynamically distinguish between prepetition, postpetition and post-emergence phases of a restructuring
- Make restructuring specific working capital and operational adjustments to traditional modeling assumptions
- Build a sophisticated multi tranche debt schedule, including the possibility of a DIP rollup
- Deriving valuation ranges using multiples
- Analyzing proposed plan distribution
- Performing recovery sensitivity by investor class (“waterfall” analysis)
Restructuring Modeling Reviews (9)
I'm an incoming intern at Greenhill in its Restructuring group, graduating from Tulane 2020. I finished the course a few days before I heard Greenhill was a client of yours. (I’ve also enjoyed taking the other courses I’ve been assigned — Bonds & Debt, Accounting, etc.).
I was impressed by the primers provided and the breadth of concepts covered in this course. I'd happily refer someone interested in Rx to this course
The explanations are clear and helpful for me as a beginner. I especially like the access to Macabacus, I think that's a nice touch. I hope to be able to put what I've learned to good use when I make a move to go into the restructuring space.
I found the Restructuring Modeling course to be extremely informative as someone with minimal prior knowledge of bankruptcy and restructuring. The course does well to give a summary of the process, and explaining the significance of "pre-petition" and "post-petition" events.
My goal for purchasing the course was to prepare for an upcoming investment banking interview and case study and I will be making a final decision on full-time job offers in the next week (thanks to WSP).
The course helped me obtain an offer from arguably the top restructuring and turnaround consulting firm.
I'm currently a management consultant with a large global firm but wanted to shift into restructuring for a number of reasons.
I wanted to refresh my modeling skills while also getting a crash course on bankruptcy and restructuring as I had some interviews approaching.
Your course checked the boxes and I have an offer from firm name omitted. Firm name omitted was impressed I took it before my interviews.
Having an online course was key. At this level, being able to determine the study pace is critical. Supporting documents were terrific.
I took this course to prepare for my restructuring interviews and to learn modeling skills should I secure an offer in restructuring. I found the course to be useful and worthwhile - especially as good preparation for my interviews.
I really believe that WSP does a great job in clearly explaining difficult subjects as well as teaches both students and working professionals very useful modeling techniques. Many of the modeling techniques that I have learned through the courses I have used in my career. Extremely useful and I wish I took the course prior to my first job in restructuring.
Very few other providers offer courses that are as specialized as Wall Street Prep. The videos and the supplemental materials have been very helpful so far.
I chose this course over other providers because Wall Street Prep provides training to large and well-known companies in the finance sector. The videos were very thorough and descriptive and along with the step-by-step manual it made it really easy to understand.
The Wall Street Prep Quicklesson Series
7 Free Financial Modeling Lessons
Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.