Valuing Companies in Chapter 11 – Courts Weigh In On Supportability Of Assumptions

06 Jul Valuing Companies in Chapter 11 – Courts Weigh In On Supportability Of Assumptions

Guest-blogger Ray Clark of Valcor (whose prior posts appear here, here, and here) has recently completed a succinct but helpful piece on the valuation of firms in Chapter 11.

Ray’s piece focuses on the supportability of assumptions underlying valuations.  As he notes:

Over the last year, there have been a rash of bankruptcy cases and related lawsuits involving challenges to both debtor and creditor financial experts, wherein opposing parties successfully attacked the relevance and reliability of valuation evidence. In a number of cases, even traditional methodologies were disqualified for lack of supportable assumptions, which severely impacted recoveries for various stakeholders.

The piece is here.