Bankruptcy, Reorganization and Restructuring

When challenging business situations arise, companies, lawyers, investors, and debt holders contact Marshall & Stevens to provide valuations of businesses, equity and debt instruments, machinery and equipment, real estate, and intangible assets, such as tradenames. Sometimes we are also requested to provide Fairness Opinions or Solvency Opinions.

Transactions to keep distressed entities in business require an opinion of value from an independent source in order to provide buyer, seller, the Bankruptcy Court, audit firm or others with the information needed to close the transaction.  Such transactions may include:

  • Chapter 11 Bankruptcy which may require a Fresh Start Accounting exercise, determining the value of all underlying tangible and intangible assets of the “new entity.”
  • 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: Downround and distressed investments in the enterprise which may require the valuation of an enterprise, assets, equity and/or debt instruments.
  • Solvency Opinions are 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 to discuss how we may assist you.

back to top