TABLE OF CONTENTS

• Jurisdiction: United States

TABLE OF CONTENTS

Introduction ................................................................................................................. 1

Chapter 1: General Bankruptcy Valuation Issues...................................3

A. Elements of the Bankruptcy Valuation.....................................................................5

B. Business Valuation Due Diligence Procedures....................................................... 16

C. Debtor Company Business and Security Valuation Approaches and Methods........25

D. A Checklist for the Review of a Solvency Opinion................................................34

E. Bankruptcy Analyst Caveats..................................................................................49

F. Nonsystematic Business Valuation Adjustments....................................................57

G. Valuing the Financially Distressed Company.........................................................78

H. Case Studies in Corporate Bankruptcy Valuation...................................................82

Chapter 2: The Fair Market Value Standard of Value.........................89

A. FMV and Going-Concern Value Compared: An Expert's Perspective....................91

B. Understanding Fair Market Value in Bankruptcy ................................................... 96

Chapter 3: Market-Approach Valuation Methods...............................101

A. Fundamentals of the Market Approach...............................................................103

B. Reliance on M&A Transaction Pricing Multiples: Reasons Why Acquirers Overpay.........................................................................115

C. Guideline Company Valuation Methodology: Details Often Overlooked.............127

D. Playing the Market (Approach): Going Beyond the DCF Valuation Method........132

Chapter 4: Income-Approach Valuation Methods...............................139

A. The Foundations of Discounting: Time Value of Money...................................... 141

B. Discounted Cash Flow Valuation: The Basics...................................................... 165

C. Solvency Analysis: A Primer on Applying the Discounted Cash Flow Method .... 174

Chapter 5: Income Approach: Estimating the Cost of Capital.......179

A. Fundamentals of the Cost of Capital................................................................... 181

B. A Primer on Cost of Capital for the Distressed/Bankrupt Company..................... 197

C. Cost of Capital...