Module description

Turnaround Management

Prerequisite

Basic knowledge in Business Administration; for the lecture "Turnaround Managment" knowledge on "Corporate Finance" and „International Economic Law I".

Teaching methods Lecture/seminar
Learning target
  • Extensive knowledge with regard to the stages and stage-related tasks of Turnaround Management
  • Knowledge of aspects regarding Law of Employment and Insolvency Law within the context of Turnaround Management
  • Ability to implement acquired expertise in a task- and goal-oriented way
  • Ability to perform the role as a consultant in a turnaround process
Duration 2 Semester
Hours per week 4.0
Overview
  • Classes:45 h
  • Individual/
    Group work:105 h

  • Workload:150 h
Credits and grades

Part 1: written examination (60 min)

Part 2: project thesis and presentation (Group examination is possible)

Both grades are equally weighed in the module grade.

The module grade is factored in 6/90in the final grade.

ECTS 5.0
Responsible person

Prof. Dr. Rainer Fischer

Max. participants 20
Recommended semester 1 and 2
Frequency Every sem.
Usability

The content of the module can also be used for the University's own part-time program "General Management".

Lectures Turnaround Management I
Type Seminar
Nr. IBC-07-02
Hours per week 2.0
Lecture contents

With a very limited amount of time available the turnaround consultant is asked for a precise analysis of the company's and its market's situation emphasizing on the explanation why the company suffers from losses and / or cash drains based on facts and figures.
Therefore it`s essential to rapidly gather, evaluate and interpret all relevant data to fully understand and report the company's problems. This will lead to the answer of the main question:
Is company`s potential sufficient to overcome the crisis?

If the answer is positive the next step will be to create a master plan or blue print for the company's future starting from the strategic and managerial guidelines and developing the necessary means and measures to regain the state of profitability. To convince the various participants in the turn around process, particularly the bankers involved, this master plan has to include realistic forecasts of the company's financial future: profit & loss statement, balance sheet, and detailed forecast of the future cash flow plan, which is of special interest for calculating the amount of fresh money which required.

Usually, the consultant is also asked to support the implementation of the master plan and/or to control the restructuring process with regular reports to the banks.
If the company cannot survive exit strategies have to be developped: sale of the activity or even bankruptcy in its different forms.

All these steps will be discussed in detail based on real cases. Additionally it will be illustrated in which `way` the consultant has to cooperate with all participants involved e.g. banks, stake-holders, trade unions, creditors.

Literature

Harvard Business Review on Turnarounds (WD 706A) 2001.

Arpi, Bo International Turnaround Management, McMillan 1999. (WD 703).

Gilson, Stuart C., Creating Value Through Corporate Restructuring: Case Studies in Bankruptcies, Buyouts, Breakups, in John Wiley Sons, 2001.

Donaldson, Gordon, Corporate Restructuring: Managing the Change Process from Within; Harvard Business School Press, 1994.

International Economic Law I
Type Lecture
Nr. IBC-07-01
Hours per week 2.0
Lecture contents

Principles of Economic Law and Contract Law:

  • Introduction to International Economic Law
  • Contract Law in Germany, England and the USA
  • Security Rights

Company Law:

  • Company Law in Germany, England and the USA
  • Formation and Institutions of the German Stock Corporation, the German Private Limited Corporation, the English Public Limited Company, the English Private Limited Company, and the US Public Corporation
  • Company Law in Asia, e.g. in the Peoples Republic of China and in Japan

Insolvency Law:

  • Insolvency Law in Germany, England, and the USA
  • Insolvency Proceedings and Insolvency Plan
Literature

B. Sharon Byrd, Law & Language of Contracts and Torts, Munich 1998.

Nigel Foster / Satish Sule, German Legal System and Laws, 3. Edition, New York 2002.

Francis Lyall, An Introduction to British Law, Baden-Baden 1994.

Peter Hay, Law of the United States, Munich 2002.

Hannes Schneider / Martin Heidenhain, The German Stock Corporation Act - Bilingual Edition with an Introduction to the Law, Munich 2000.

Klaus J. Müller, The GmbH, Munich 2006.


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