Jose Liberti
Jose Maria Liberti

FINANCE
Visiting Associate Professor of Finance

Print Overview

José María Liberti is Visiting Associate Professor of Finance at Kellogg School of Management and Associate Professor of Finance at Kellstadt Graduate School of Business, DePaul University. He is also a research fellow of the European Banking Center (EBC). He also holds an affiliation with both the  Heizer Center for Private Equity and Venture Capital, and the Center for Family Enterprises at Kellogg School of Management.

José María was previously Assistant Professor of Finance at London Business School, Visiting Assistant Professor at The University of Chicago Booth School of Business and Associate Professor of Finance at Tilburg University. He has also taught at IAE Aix-en-Provence Graduate School of Management and the Indian School of Business.

José María has served as an economic consultant at the Argentinean Ministry of Economics, Work and Public Services. Before continuing with his graduate studies, José María worked at Citibank N.A. as a Corporate Financial Advisor and in the Risk Management and Investment Banking Divisions in Buenos Aires and New York.

José María's research lies in the boundaries of corporate finance, financial intermediation and organizational economics. Part of his attention has been drawn to understand how incentives, allocation of authority and types of information are used in the actual decision-making process of individuals Recent work has examined the role rotation among agents as a mechanism to alleviate moral hazard in communication and how sharing on public information may impact coordination problems among borrowers. His work has been published at The Journal of Finance and The Review of Financial Studies. José María received the Brattle Award (First Prize) for the best paper in corporate finance awarded annually by the American Finance Association. He has also received twice the Brattle Distinguished paper award. His work has been presented at numerous universities and governmental bodies around the world.

Liberti was born in Buenos Aires, Argentina. He received a bachelor's and master's degree in economics from the Universidad de San Andrés (UdeSA), in Buenos Aires. He moved to the United States in 1998 and earned both a Masters and a PhD in Economics from The University of Chicago.

An award-winning teacher at Kellogg School Management and DePaul University, he teaches graduate elective courses in Mergers & Acquisitions, Global Entrepreneurial Finance and Corporate Restructuring both at the MBA and Executive MBA level. 

Print Vita
Education
Ph.D., 2004, Economics, University of Chicago
M.A., 2001, Economics, University of Chicago
M.A., 1995, Economics, Universidad de San Andrés
B.A., 1994, Economics, Universidad de San Andrés

Academic Positions
Associate Professor of Finance, CentER, Tilburg University, 2010-present
Assistant Professor of Finance, Charles H. Kellstadt Graduate School of Business, DePaul University, 2007-present
Assistant Professor of Finance, Institute of Finance and Accounting, London Business School, 2003-2006

 
Print Research
Research Interests
Empirical Corporate Finance, Theory of Organizations, Theory of the Firm, Empirical Banking

Articles
Liberti, Jose, Andrew Hertzberg and Daniel Paravisini. Forthcoming. Public Information and Coordination: Evidence From a Credit Registry Expansion. The Journal of Finance. 65(3)
Liberti, Jose, Andrew Hertzberg and Daniel Paravisini. 2010. Information and Incentives Inside the Firm: Evidence from Loan Officer Rotation. The Journal of Finance. 65(3)
Liberti, Jose and Atif Mian. 2010. Collateral Spread and Financial Development. The Journal of Finance. 65(1)
Liberti, Jose and Atif Mian. 2009. Estimating the Effect of Hierarchies on Information Use. Review of Financial Studies. 22(10)

 
Print Teaching
Full-Time / Part-Time MBA
M&As, LBOs and Corporate Restructuring (FINC-448-0)

This course counts toward the following majors: Finance

The course involves analysis of corporate restructuring strategies including mergers, acquisitions, hostile takeovers and the market for corporate control, financial re-capitalizations, leveraged buyouts, management buyouts, going-private decisions, fiduciary duties (Business Judgment Rule, Revlon Mode, Enhanced Scrutiny), reorganization under bankruptcy (Chapter 11, Chapter 7, 363 Sales, Pre-Package Bankruptcy), the role of private equity and other methods of restructuring (spin-offs, split-ups, carve-outs and tracking stock). Transactions are examined from the perspectives of both the corporation and capital markets. Common “arbitrage” trading strategies involving corporate transactions and limits to arbitrage will also be discussed. The course integrates the corporate governance and agency dimensions, financial and strategic management aspects, and legal and accounting considerations into a unified framework for investigating issues such as, pre-merger planning, fact-finding, accounting and tax implications, anti-trust problems, post-merger integration, and short-term and long-term shareholder wealth consequences of financial and organizational restructuring transactions. The course combines applied theoretical approach with the case study method through detailed analysis of domestic and global restructuring deals. The course is designed so as to create an interface or link between the academic and the practitioner perspectives of various dimensions of corporate restructuring process.

Financial topics include:

• Accretion vs. Dilution Analysis

• The P/E Problem in Acquisitions

• Strategic vs. Financial Acquisitions

• The Role of Private Equity Firms in Acquisitions

• Structuring Offers and Forms of Payment: Cash vs. Stock; Fixed vs. Floating Stock Payments

• Hedging In M&A: Earn-Outs, Collars and Price Guarantees

• Defense Tactics

• Hostile Takeovers and the Role of Activist Shareholders

• Merger of Equals

• Corporate Restructuring: Spin-Offs, Split-Ups, Equity Carve-Outs and Tracking Stock

• Recapitalization of Troubled Companies: Out-of-Court, In-Court and Pre-Packaged Bankruptcy Procedures, Chapter 11 vs. Chapter 7 vs. 363 Sales

• Distressed Debt Investment

• LBOs Modeling and Valuation

• Asset Backed Securities

• The Role of Risk Arbitrageurs and Limits to Arbitrage

Who Should Take This Course?

The course is aimed at students planning to work for investment banks and corporate advisory firms involved in business restructuring and turnarounds, mergers and acquisitions, and financial reorganization transactions. The course offers a comprehensive strategic perspective, a framework of conceptual and theoretical paradigms, and applied tools for deal design and corporate valuations that may facilitate students establishing their own consulting and advisory services.

This course can be taken if you do not meet the prerequiste requirement ONLY IF the permission of the instructor is given. An understanding of financial options will be assumed.



Global Entrepreneurial Finance (FINC-945-0)

This course counts toward the following majors: Finance

This course is designed to intersect three areas of interest: (a.) Entrepreneurial Finance and Private Equity including Entrepreneurial Buyouts; (b.) Family and Closely-Held Firms, and; (c.) International Finance with special emphasis on cross-border valuation and access to finance. The course is, by nature, a finance course that deals with entrepreneurial, family, and closely-held firms in an international context including both developed and emerging market countries where institutions and property rights are weak. The core question behind the course is: “How do entrepreneurial managers, family firms, closely held firms and those who finance them design and execute transactions that effectively match opportunities and resources in an international context?” An overreaching insight of the GEF course is that the notions of risk and reward are as important in privately-held as in publicly held firms. In privately-held firms and closely-held firms, however, entrepreneurs and financiers are often forced to make assumptions based on incomplete data. The course will provide you with the tools necessary to value companies domiciled in countries around the world. The aim of the course is for students to understand the motivations, decision processes, transaction execution, and valuation consequences of financial, business, and organizational restructuring done by buyouts, family firms and closely-held firms in an international context. The course facilitates developing the ability to plan, evaluate, and execute transactions using financial modeling and quantitative techniques. The course does not deal with venture capital, early-stage financing or entrepreneurship concepts.

Who Should Take This Course?

GEF is aimed at students who plan to start a business at some point in their careers, students who plan to work for or finance an entrepreneurial firm, and students who plan to work for an established firm. All these aspects are developed in an international context framework where institutions play a he role in shaping financial decisions. GEF is helpful not just for students who plan to work in international firms; even students who plan to work in their home countries can learn a great deal by comparing and contrasting opportunities, financing contexts, and legal structures across different countries. The course is also designed for students who may be involved in family firms and closely held companies in a variety of roles, including founders, shareholders, or managers of their own family’s firm, as well as non-family managers and employees, investors or business partners (e.g. private equity investors, strategic buyers or financial buyers), and advisors of various kinds (e.g., investment bankers, board members or consultants). Finally, the course is also designed for future senior executives that manage global financial operations, the general managers working within these firms, and the intermediaries advising or providing capital to these firms.

Financial topics covered include:

• Valuing Cash Flows in an International Context: Cross-Border Valuation

• Assessment of Country Risk and Expropriation Risk. Legal Issues

• Capital Structure Decisions: Comparison of Different Sources of Capital

• Impact of Funding Sources on Performance: Private Placements and Rule 144a

• Private Equity Terms and Mechanics

• Contracting Problems and Deal Structures. Negotiating Deals

• Entrepreneurial Buyouts and Private Equity

• LBO Modeling and Valuation

• Real Options in International Settings

• Valuation of Subscription and Franchise Businesses

• Public vs. Private Equity: The Decision of Where to List a Stock.

• The Importance of ADRs and GDRs: Capital Flight

• Valuation of Family Firms and Closely-Held Firms: Control Premium, Minority Discount and Illiquidity Discount

• Partnering with Public and Private Investors

• Control-Enhancement Mechanisms: The Role of Dual Class Shares and Pyramidal Ownership



Executive MBA
Global Corporate Restructuring (FINCX-448-0)
The course provides students with the unique finance problems, governance and management issues faced by family firms, and to the ways in which these issues can be addressed. The course provides students with a framework for analyzing how family ownership, control, and management affect value, and whether and how more value can be created for the various stakeholders in family firms. (formerly known as Entrepreneurial Family Firms, Growth Equity & Corp Restructuring).