Business Valuation and Bankruptcy (eBook)

Ian Ratner, Grant T. Stein, John C. Weitnauer (Autoren)

eBook Download: EPUB | PDF

2009 | 1. Auflage
272 Seiten
John Wiley & Sons (Verlag)
978-0-470-56444-8 (ISBN)

Infos

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.

Autor

IAN RATNER, CPA, ABV, ASA, CFE, of GlassRatner Advisory & Capital Group LLC, is a nationally recognized financial advisor, focused in the area of forensic accounting, litigation support, business valuation, and bankruptcy consulting. He has a proven track record as an expert advisor and has led high-profile and complex assignments including failed transactions, SEC investigations, financial reporting frauds, large corporate bankruptcies, and countless commercial litigation matters. In many of these cases, he is asked to decipher contradictory valuation opinions and testimony by getting behind the numbers relied on by others. Ian has testified as an expert on dozens of occasions in state and federal courts in various jurisdictions around the country. GRANT T. STEIN is partner in the law firm of Alston & Bird LLP in the Bankruptcy, Reorganization and Workouts Group. He is a Fellow of the American College of Bankruptcy, Chair and past president of the Southeastern Bankruptcy Law Institute, and is identified as a top practitioner in Chambers USA: America's Leading Lawyers for Business, The Best Lawyers in America, and Super Lawyers magazine. During his more than twenty-five years of practice, he has amassed extensive bankruptcy and litigation experience dealing with valuation questions. JOHN C. WEITNAUER is a partner with the law firm of Alston & Bird LLP in the Bankruptcy, Reorganization and Workouts Group. In 2006, he was co-trial counsel for plaintiffs in a jury trial that involved many business valuation issues, and obtained a verdict stating that over $965,000,000 in transfers were made with the actual intent to defraud the plaintiffs, with $350,000,000 in punitive damages. He has been included in The Best Lawyers in America reference books since 1995. He is profiled in Chambers USA: America's Leading Lawyers for Business. He is a Contributing Editor of two bankruptcy treatises, Norton Bankruptcy Law and Practice and the Bankruptcy Litigation Manual.

Inhalt

Preface ix

Chapter 1 Introduction 1

The Troubled Company Continuum 1

Operational and Financial Disstress 3

The Troubled Company Response 3

Valuation in Reorganization or Bankruptcy 5

Conclusion 6

Chapter 2 Industry Practitioners and Standards 7

Professional Organizations and Business Valuation Standards 7

Business Valuation Practitioners and Certifications 14

Conclusion 19

Notes 19

Chapter 3 The Basics of Business Valuation 21

The Purpose of the Valuation 21

Standard of Value 22

Premise of Value--Going Concern or Liquidation 23

Valuation Approaches 25

Fundamentals 29

Conclusion 38

Notes 38

Chapter 4 Income Approach 39

Discounted Cash Flow Method 41

Capitalized Cash Flow Method 57

Conclusion 58

Note 59

Chapter 5 Market Approach 61

Guideline Company Method 61

Comparable Transaction Method 73

Conclusion 81

Chapter 6 United States Bankruptcy Code 83

Introduction to the Structure of the Bankruptcy Code 83

Commencement of a Bankruptcy Case and Filing of Schedules 84

Chapter 7 of the Bankruptcy Code 85

Chapter 11 of the Bankruptcy Code 85

Avoiding Powers under the Bankruptcy Code--Preferences 94

Avoiding Powers under the Bankruptcy Code--Fraudulent Transfers 95

Valuation Principles from the Bankruptcy Courts 95

Conclusion 96

Notes 96

Chapter 7 Valuations in Bankruptcy as of the Date of the Hearing 97

Introduction 97

Relief from the Automatic Stay and Adequate Protection 98

§ 363 Sales 100

Use of Cash Collateral 105

Disclosure Statement 105

Plan Confirmation--Feasibility 105

Plan Confirmation--Best-Interests-of-Creditors Test 106

Plan Confirmation--Cram Down 106

Conclusion 111

Notes 111

Chapter 8 Valuations in Bankruptcy at a Time in the Past--Avoidance Actions 121

Overview 121

Avoidance Actions--Preferences 121

Avoidance Actions--Fraudulent Transfers 123

The Applicable Legal Tests for Insolvency 128

Insolvency Test: Valuation of Debts 129

Insolvency Test: The Valuation of Assets 132

Proof of Insolvency by Retrojection 135

The Insolvency Test: Comparing Assets and Debts 135

Is the Public Market's Assessment in the Past Conclusive Proof of Solvency, Even If the Company Later Fails? 135

Use of Hindsight in the Valuation Process 136

Conclusion 143

Notes 143

Chapter 9 Solvency Opinions 149

Introduction 149

Who Uses Solvency Opinions? 149

Solvency Opinion Preparation 151

Solvency Metrics 153

Case Studies 155

Conclusion 157

Notes 157

Chapter 10 Daubert 159

Challenges to Experts or Their Testimony 159

Lack of Relevance 171

Practical Lessons from Daubert Cases for Experts and Lawyers 171

Conclusion 173

Notes 173

Appendix

AICPA Statement on Standards for Valuation Services No. 1, Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset 179

Index 255

Produkt-Details

• Erscheint lt. Verlag: 3.11.2009
• Reihe/Serie: Wiley Finance Editions
• Reihe/Serie: Wiley Finance Editions
• Sprache: englisch
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Schlagworte: Accounting • Bewertung • Rechnungswesen • Valuation
• ISBN-10: 0-470-56444-X / 047056444X
• ISBN-13: 978-0-470-56444-8 / 9780470564448