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