BIWS 400 questions - Restructuring / Distressed
M&A Exam Questions and Answers Grade A+
How much do you know about what you actually do in restructuring? - Answer-
Advise distressed companies -businesses going bankrupt, in the midst of
bankruptcy, or getting out of bankruptcy
Help them change their capital structure to get out of bankruptcy, avoid it in the
first place, or assist w/ a sale of the company depending on the scenario
What are the two different sides of a restructuring deal?
Which one do we usually advise? - Answer-Advising the debtor (company itself)
or the creditor (anyone that has lent the company)
You are advising the company trying to sell or get out of the mess it's in, or you are
advising buyers and lenders that are trying to take what they can from the
company.
,The "creditors" are multiple parties usually because it is anyone who loaned the
company money.
Houlihan Lokey advises the creditor, Blackstone and Lazard advise the debtor
Why are you interested in restructuring? - Answer-You gain a very specialized
skillset - much of the work is more technical / interesting than M&A
You also get broader exposure because you see both the bright sides and not-so-
bright
There is a lot of overlap with law - you are operating in a legal framework with
attorneys involved - if I decide 20 years down that I would want to pursue law
How are you going to use your experience in restructuring for your future career
goals? - Answer-Reasons above ^
You can use experience to work at a Distressed Investments or Special Situations
Fund, which most people outside of Restructuring don't have access to.
, You can also go back to M&A or normal investing too and have superior technical
knowledge to other bankers
How would a distressed company select its restructuring bankers? - Answer-
Extremely specialized knowledge and relationships are required in restructuring or
distressed M&A
Selection based on experience doing similar deals in the industry as well as their
relationships with all the other parties that will be involved in the deal process
Restructuring involves many more parties than a normal M&A or financing deal
does (lawyers, shareholders, debt investors, suppliers, management, crisis
managers) - managing everyone is extremely difficult
Why would a company go bankrupt in the first place? - Answer-a few reasons ..
-a company cannot meet its debt obligations / interest payments
-creditors can accelerate debt payments and force the company into bankruptcy
M&A Exam Questions and Answers Grade A+
How much do you know about what you actually do in restructuring? - Answer-
Advise distressed companies -businesses going bankrupt, in the midst of
bankruptcy, or getting out of bankruptcy
Help them change their capital structure to get out of bankruptcy, avoid it in the
first place, or assist w/ a sale of the company depending on the scenario
What are the two different sides of a restructuring deal?
Which one do we usually advise? - Answer-Advising the debtor (company itself)
or the creditor (anyone that has lent the company)
You are advising the company trying to sell or get out of the mess it's in, or you are
advising buyers and lenders that are trying to take what they can from the
company.
,The "creditors" are multiple parties usually because it is anyone who loaned the
company money.
Houlihan Lokey advises the creditor, Blackstone and Lazard advise the debtor
Why are you interested in restructuring? - Answer-You gain a very specialized
skillset - much of the work is more technical / interesting than M&A
You also get broader exposure because you see both the bright sides and not-so-
bright
There is a lot of overlap with law - you are operating in a legal framework with
attorneys involved - if I decide 20 years down that I would want to pursue law
How are you going to use your experience in restructuring for your future career
goals? - Answer-Reasons above ^
You can use experience to work at a Distressed Investments or Special Situations
Fund, which most people outside of Restructuring don't have access to.
, You can also go back to M&A or normal investing too and have superior technical
knowledge to other bankers
How would a distressed company select its restructuring bankers? - Answer-
Extremely specialized knowledge and relationships are required in restructuring or
distressed M&A
Selection based on experience doing similar deals in the industry as well as their
relationships with all the other parties that will be involved in the deal process
Restructuring involves many more parties than a normal M&A or financing deal
does (lawyers, shareholders, debt investors, suppliers, management, crisis
managers) - managing everyone is extremely difficult
Why would a company go bankrupt in the first place? - Answer-a few reasons ..
-a company cannot meet its debt obligations / interest payments
-creditors can accelerate debt payments and force the company into bankruptcy
