Distressed Valuation


The aim of the two-day workshop is to provide participants with the skills to identify key value drivers and distinguish different valuation methods and their impact on the value of distressed companies. The focus is on building the knowledge and skills needed to estimate the potential recovery of various classes of debt. This is a highly interactive workshop where exercises and case studies are used to illustrate key learning points. This workshop will equip participants to:

  • Use a structured approach to ascribe value to public and private distressed companies
  • Select and apply the most appropriate valuation techniques to companies and sectors and appreciate how different valuation techniques might influence the ultimate valuation
  • Understand how the key variables in both comparable and discounted cash flow valuation models can be applied to listed and unlisted companies
  • Appreciate the available options to lenders / investors, benchmarking likely recovery against other alternatives and the current market prices of the company’s debt, where applicable.

Analytical Overview

A brief overview of the equity valuation framework which is used to determine the likely recovery for creditors

  • A structured framework to equity valuation: value parameters, value drivers, corporate strategy, funding strategy, valuation
  • Distinguishing features of distressed companies; what are the causes of distress?
  • Market conditions and their influence on distressed valuations
  • A first stab at understanding the capital structure
  • Not all jurisdictions are equal: any impact on valuations?
  • Exercise / Illustration case study : identify the true purpose of borrowing.