You’ve done a cash flow analysis yours either at 0 revenue or your margins are too low and/or fixed costs too high to support the business continuing at drastically reduced revenue levels. Or some combination of reasons has brought you to realize that your business can’t survive as is.
You’re ready to consult with an attorney and an Economic damages expert. With this, you have been informed you have several different workout options:
- Shutdown/walk away
- Chapter 7 bankruptcy
- Chapter 11 restructure
- Assignment for benefit of creditors (ABC)
Whether it’s an asset sale, sale of the business or other court-mandated M&A transaction that may go along with the legal procedure, you’ll need to figure out how to value your assets/business.
There are several areas of inputs that we’re taking a close look at in these changed times-long term treasury rates, projections, risk factors, and economic factors.
If you need help regarding any financial issues within a bankruptcy such as modeling, please contact us and connect with our Economic damages expert.
Bob Bates, CPA, CVA, CFE, CFO worked for a financial consulting firm in Washington DC during the recession of the early 1990s. This firm performed litigation support and provided the primary modeling for what was then the largest personal bankruptcy ever, a multi-billion dollar filing for DF Antonelli, which included businesses throughout the world. Mr. Bates has also worked for a Bankruptcy Trustee in Boston, who assisted in the financial aspects of various ABC’s. He also performs damage calculations and provides expert witness testimony in a variety of cases.