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Business Valuation and Bankruptcy

Business Valuation and Bankruptcy

Ian Ratner, Grant T. Stein, John C. Weitnauer

ISBN: 978-0-470-56446-2

Oct 2009

288 pages

$61.99

Description

An essential guide to business valuation and bankruptcy

Business Valuation and Bankruptcy helps you-whether you are an accountant dealing with a troubled company, a lender, an investor, a bankruptcy and restructuring lawyer/financial advisor, or a private equity player-to focus on solving everyday and case determinative disputes when creditors, lenders, and debtors have differing views of value.

Introducing valuation issues early on in the restructuring/bankruptcy process so you can plan accordingly, this book offers

  • Many real life case examples, case descriptions, and tables to demonstrate the applicable sections of the Bankruptcy Laws
  • A review of the methods, applications, pros and cons of restructuring with the basic tools to understanding it
  • A description of the life cycle of a troubled company and the various stages of a restructuring
  • An analysis of the valuation issues that confront practitioners in the real world of application of the law

Business Valuation and Bankruptcy is written in terms that are common to bankruptcy professionals and is essential, timely reading for players in the bankruptcy and restructuring environment.

Preface.

Chapter 1 Introduction.

The Troubled Company Continuum.

Operational and Financial Disstress.

The Troubled Company Response.

Valuation in Reorganization or Bankruptcy.

Conclusion.

Chapter 2 Industry Practitioners and Standards.

Professional Organizations and Business Valuation Standards.

Business Valuation Practitioners and Certifications.

Conclusion.

Notes.

Chapter 3 The Basics of Business Valuation.

The Purpose of the Valuation.

Standard of Value.

Premise of Value - Going Concern or Liquidation.

Valuation Approaches.

Fundamentals.

Conclusion.

Notes.

Chapter 4 Income Approach.

Discounted Cash Flow Method.

Capitalized Cash Flow Method.

Conclusion.

Notes.

Chapter 5 Market Approach.

Guideline Company Method.

Comparable Transaction Method.

Conclusion.

Chapter 6 United States Bankruptcy Code.

Introduction to the Structure of the Bankruptcy Code.

Commencement of a Bankruptcy Case and Filing of Schedules.

Chapter 7 of the Bankruptcy Code.

Chapter 11 of the Bankruptcy Code.

Avoiding Powers under the Bankruptcy Code – Preferences.

Avoiding Powers under the Bankruptcy Code - Fraudulent Transfers.

Valuation Principles from the Bankruptcy Courts.

Conclusion.

Notes.

Chapter 7 Valuations in Bankruptcy as of the Date of the Hearing.

Introduction.

Relief from the Automatic Stay and Adequate Protection.

§ 363 Sales.

Use of Cash Collateral.

Disclosure Statement.

Plan Confirmation – Feasibility.

Plan Confirmation – Best Interests of Creditors Test.

Plan Confirmation – Cram Down.

Conclusion.

Notes.

Chapter 8 Valuations in Bankruptcy at a Time in the Past - Avoidance Actions.

Overview.

Avoidance Actions – Preferences.

Avoidance Actions - Fraudulent Transfers.

The Applicable Legal Tests for Insolvency.

Insolvency Test: The Valuation of Debts.

The Insolvency Test: Valuation of Assets.

Proof of Insolvency by Retrojection.

The Insolvency Test: Comparing Assets and Debts.

Is the Public Market's Assessment in the Past Conclusive Proof of Solvency, Even If the Company Later Fails?

Use of Hindsight in the Valuation Process.

Conclusion. 

Notes.

Chapter 9 Solvency Opinions.

Introduction.

Who uses Solvency Opinions?

Solvency Opinion Preparation.

Solvency Metrics.

Case Studies.

Conclusion.

Notes.

Chapter 10 Daubert.

Challenges to Experts or Their Testimony.

Lack of Relevance.

Practical Lessons from Daubert Cases for Experts and Lawyers.

Conclusion.

Notes.

Appendix.

AICPA Statement on Standards for Valuation Services No. 1, Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset.

Index.