| |
Problem: |
Solution: |
| Restaurant Chain Acquisition |
A capital firm from Jacksonville, representing a buyer from New York, using a law firm in Miami, was in negotiations to buy a
restaurant chain in Atlanta. The restaurants were in bankruptcy, and court-established deadlines were approaching rapidly.
Would the restaurants generate sufficient cash flow to justify the sale? |
A team of Analytical Value professionals stepped in to conduct financial due diligence on site. Since the financial records of the bankrupt company were in
total disarray, extensive verification of receipts and disbursements was required. Working days, nights, on weekends and through the Thanksgiving
holiday, our team traced everything back to cash, and delivered our due diligence report in time for the buyer to line up financing and
complete the purchase before the court deadline. |
| Wholesale Food Manufacturing Plant |
A bankruptcy trustee wanted to recapture some substantial preference payments and redistribute them fairly from the bankruptcy estate.
His task became more difficult since the payments in question were made a year or so before the actual bankruptcy filing.
Could the trustee prove that the debtor was actually insolvent at the time the payments were made? |
Senior Analytical Value personnel reconstructed financial records, traced funds through refinancings and shell companies, and provided
a report clearly showing that the debtor could not legitimately meet his financial obligations or cover his required debt service for
more than eighteen months prior to filing for bankruptcy. The trustee was able to use our findings as leverage to recapture the
preference payments. In court, the bankruptcy judge commended our efforts, stating “This was an exceptional use of the resources of the [bankruptcy] estate.”
|
| Law Firm Dissolution |
Three lawyers were in partnership in a contingent fee practice, and two of them wanted the third to leave.
The forced-out partner claimed the expected future earnings from the practice were worth substantial amounts; the remaining partners contended the only value was
in the furniture and fixtures. Can these widely divergent views of value be reconciled? |
An Analytical Value managing director was appointed by the court as a neutral auditor and valuator, serving the interests
of both sides in the dispute. He reconstructed financial records, tested alternative approaches to value, and developed preliminary
valuation conclusions that helped the parties reach a mediated settlement. An article based on this case appears
in the Institute of Business Appraisers' professional journal, Business Appraisal Practice |
| Valuation of Franchise Rights |
A healthcare services franchise holder terminated his relationship with the national franchisor. The contract provided that the
franchisee should pay for the franchise rights on termination. The national group contended that all the value of the business enterprise
was due to the franchise, while the franchisee disagreed. How do you measure the value of intangible assets? |
After arbitration settled the question of liability, Analytical Value personnel conducted an in-depth analysis of the business operations, following the guidelines set forth by the
Financial Accounting Standards Board, and delivered a detailed report summarizing the multiple elements of intangible value in this enterprise.
The parties were able to reach a negotiated settlement. |
