Bankruptcy, Reorganization and Restructuring

Reorganization transactions often require asset valuations as well as valuation of the business. We have the specialists.

Fiduciaries, the Bankruptcy Court, equity and debt holders, audit firms, law firms or others may require valuation analyses to close reorganization and restructuring transactions. Our in-house professionals in the valuation of businesses, equity and debt, intangible assets, machinery & equipment, and real estate work closely with the transaction parties to provide the required analyses and reports.  

Distressed transactions that require valuation include:

  • Chapter 11 Bankruptcy: A new (“fresh”) opening day balance sheet is required when the entity exits bankruptcy. This requires a Fresh Start Accounting valuation exercise to determine the fair value the underlying tangible and intangible assets as of the date of the exit.
  • Debt Takeover: Debt taking the place of equity.
  • Distressed Sale: Buy/sell consideration for sale of specific tangible assets, including sales under Section 363 of the Bankruptcy Code.
  • Forgiveness of Debt: A negotiated agreement to forgive all or part of outstanding debt may require a valuation of the underlying enterprise for tax reporting purposes.
  • Recapitalizations: Down round and distressed investments in the enterprise which may require the valuation of an enterprise, assets, equity and/or debt instruments.

It is prudent in some of the situations listed above to engage an independent firm to provide an independent Fairness Opinion.

Solvency Opinions may be requested to determine when a company entered the Zone of Insolvency, or to determine if a company can service its obligations, typically related to a recapitalization.

Please see the affiliated webpages and services sheets listed to the right or contact those listed below for more information any of these matters.

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