Valuation & Litigation Advisory Blog

This month's issue of Valuation & Litigation Advisory Insights includes the following articles:

• Why the Valuation Date is so Important
• How Calculation Engagements Can Provide an Indication of Value
• Chemtura Addresses Business Appraisals in a Volatile Economy

Why the valuation date is so important

When one considers how the value of an asset will be determined in a matter, it’s common to think about what method the appraiser will use or whether discounts may apply. But a critical factor that may not immediately come to mind is the appraisal date. This article explains how the valuation date can affect cases involving estate and business valuations, divorce, and shareholder oppression.  

1 + 1 = 2: How calculation engagements can provide an indication of value

Preparing a formal valuation for a client requires much work on the part of the appraiser. It can, therefore, be costly. But in many situations, a full-blown valuation isn’t necessary. That’s when an appraiser might suggest using a calculation of value instead. This article provides an overview of the difference between valuations and calculations and when it’s most advantageous to use a calculation of value.

Chemtura addresses business appraisals in a volatile economy

This article looks at a case in which the bankruptcy court decided to confirm the debtors’ reorganization plan. The equity holders had opposed it, claiming that the plan overpaid creditors and underpaid equity holders. But the valuation reports offered in the case fell short in their ability to sway the court. The article discusses why, and offers a sidebar arguing the case for independent experts, noting that the credibility of the valuation experts in this case was at least partially damaged by their having a contingent fee arrangement.

Prior issues are available in the E-Newsletter Archive of our Valuation & Litigation Advisory Services Resource Center. If you would like to subscribe to this free, monthly, business valuation and litigation support e-newsletter, send an email to info@skodaminotti.com.

If you have any questions about any of these articles, post a comment below or please contact our Valuation & Litigation Advisory Services Group at 440-449-6800.