Valuation Expertise is Necessary to Navigate Chapter 11

Chapter 11 reorganization affords a financially distressed or insolvent company an opportunity to restructure its liabilities and emerge as a sustainable going concern. Once a petition for Chapter 11 is filed with the bankruptcy court, the company usually undertakes a strategic review of its operations, including opportunities to shed assets or even lines of businesses.

Appraisal Foundation Releases Final Guidance on Fair Value Measurement of Customer-Related Assets

On June 15, 2016, the Appraisal Practice Board (“APB”) of the Appraisal Foundation released the final version of the Valuation for Financial Reporting Advisory #2, The Valuation of Customer-Related Assets. The non-authoritative best practices guidance elaborates on valuation approaches and methodologies that can be used to measure fair value of customer-related intangible assets such as customer lists, order or production backlogs, and contractual and/or non-contractual customer relationships. This post briefly discusses this document.

5 Things to Know About Chapter 11 Bankruptcy and Valuation

Chapter 11 reorganization, which allows financially distressed companies the opportunity to restructure liabilities and emerge as a viable going concern, can be a chaotic and challenging time for the company. For management teams working through a bankruptcy, there are a number of valuation-related considerations. Here are five key concepts for management teams and their advisors to be familiar with when embarking upon a Chapter 11 reorganization.

5 Things to Know About Chapter 11 Bankruptcy and Valuation

Chapter 11 reorganization, which allows financially distressed companies the opportunity to restructure liabilities and emerge as a viable going concern, can be a chaotic and challenging time for the company. For management teams working through a bankruptcy, there are a number of valuation-related considerations. Here are five key concepts for management teams and their advisors to be familiar with when embarking upon a Chapter 11 reorganization.

Fair Value & Bankruptcy: Fresh-Start Accounting

Perhaps because most CFOs would rather not need to be familiar with the special accounting rules that apply in the event of bankruptcy, the standards regarding so-called “fresh-start” accounting receive relatively little attention. For management teams working through a bankruptcy, there are a number of valuation-related considerations.

Are Four Bankruptcy Reorganization Plans Better than One?

Navigating a Chapter 11 bankruptcy and reorganization can be a daunting task, both for the company at issue and for the myriad of stakeholders who often have competing interests. A recent article from the New York Times DealBook discusses the impact of a change in the bankruptcy code that makes it easier for multiple stakeholders to put forth competing reorganization plans.