Go beyond the theory of capital structure

Written on 09 Dec 2021.


 

EDHEC’s MSc in Corporate Finance & Banking student, Ganeev Kauv Bagga had the opportunity to listen to Bruno Magnouat, Global Head of Advisory & Financing, Acquisition Finance, Rating at Société Générale Delphine de Montabert, Director of Advisory and Financing group at Société Générale who discussed details and practical issues related to capital structure and ratings in practice. She shares her feedback and a few insights about her journey with the Finance track.

 

What were your main takeaways from the discussion?

The session with Bruno Magnouat and Delphine de Montabert from Société Générale was very interesting. The topics that they covered were quite wide-ranging. One of my biggest takeaways from the discussion was about understanding the course contents with the help of real-life examples. Bruno Magnouat thoroughly explained what are the tangible implications of changing the debt structure of a firm, especially in the context of an M&A transaction. It was also really noteworthy to learn how different firms have distinctive risk tolerances and how credit ratings work. We were also introduced to various industry trends that are strategic events that would require a focus on debt, for example, the spinning-off trend in the pharmaceutical industry, restructuring, etc.  

 

What surprised you the most?

What surprised me the most is how innovative banks are getting with automating & digitizing their internal processes. I found the AFG app and how data is managed through it quite inventive. Another discussion point that was unique was the explanation of the bridge between long-term and short-term financing and how banks play an important role in it. Another bonus surprise was learning that Société Générale was #1 in the league tables in terms of acquisitions.

 

Did this talk change your perception of capital structure?

It definitely made me look at capital structure from a different point of view, especially since I have primarily been looking at it only from a company’s perspective. Banks have a very analytical & strategic way of looking at a firm’s ability to raise capital. Most importantly, it firmly established the importance of the topic and demonstrated how multidisciplinary capital structure can be. 

 

About you

You are in the final year of EDHEC Master in Management-Finance and chose the MSc in Corporate Finance & Banking for your Master 2. What are your job aspirations? 

I’ve been able to explore my interests in different financial fields through my internships. I have previously interned at an Investment Advisory & a Fintech start-up, but most recently I worked in the Strategy, Mergers & Acquisition department at a technology company which I absolutely enjoyed. I have always been very interested in corporate finance & strategic aspects and I am looking for similar roles in the future. 

 

What aspects of the MiM program do you enjoy the most?

One of the most novel aspects of the MiM program is the ability to take a gap year between the two masters. It gave me an incredible opportunity to explore different industries. While at school, the MiM program has a very diverse mix of students. I felt very culturally immersed. 

 

What has been the greatest opportunity you have had at EDHEC?

EDHEC has given me the opportunity to network not only with several professionals through career fairs but has also given me access to a vast alumni network. It also has been a pleasure to interact with brilliant professors who have introduced very thought-provoking concepts in class.

 

Your EDHEC experience in 3 words.

Exceeded my expectations.

Discover EDHEC's Master in Management - Finance 

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