MARCH 2022: DISTRESSED ASSET VALUATION FOR AARON SELBER

Posted on by robertwieczorek3167 in Events

Register below for our Distressed Asset Valuation for Aaron Selber on Saturday, March 12 & Sunday, March 13, 2022!

About the Event

Saturday, March 12: Day 1 – Framework and Assessing Value

Morning Session

Balance sheet

  • What are the assets
  • Quality of the assets
  • Marketability of the assets (any restrictions on the sale)
  • Tangible vs. intangible
  • Capital structure basics
  • Core vs. non-core assets
  • Capital intensity of the business
  • Working capital requirements

Enterprise value

  • Going concern question
  • Understanding the corporate structure

Cash flow value

  • Cash flow measures EBIT and EBITDA
  • Fixed vs. variable costs
  • Sustainable margins
  • Ability to defer CapEx
  • Ability to “ride the trade”
  • Ascribe a value to a reoccurring cash flow

Afternoon Session

Multiple based valuation

  • What are the value drivers for this business
  • What are other similar business valued at
  • Apply those value metrics to the subject company

Sum of the parts valuation

  • Are there separable distinct businesses or, assets that can be monetized
  • Value them separately (are the parts worth more than the whole, Gordon Gekko style)
  • Are there non-core assets that can be disposed of
  • Are there real estate assets that can be sold outright or under sale/lease back

Liquidation

  • Licenses required or limitations on liquidation
  • Anything to sell as an on going operation
  • Orderly sale
  • Forced liquidation

Establish value range

  • Vary key valuation metrics
  • Consider outcomes probabilistically
  • Determine valuation range
  • Identify the risks to the valuation

Sunday, March 13: Day 2 – Assessing Claims

Morning Session

Understanding the value of the Cap Stack

  • What are the components of the cap stack
  • Understand the seniority of the stack holders
  • Are there stack holders with leverage
  • How are these claims currently valued

Subordination

  • Contractual
  • Structural
  • Temporal

Claims against the value

  • Build a value waterfall
  • Sensitize the outcome
  • Look for valuation discrepancies

Afternoon Session

Financial analysis

  • Reviewing the case study company
  • Application of analysis to case study company
  • Present and debrief analysis