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Asset Valuations?

Often intangible-asset valuation reports and related economic analysis are prepared as part of a corporate bankruptcy. Intangible-asset valuations often impinge on controversies concerning, among other things:

  • solvency or insolvency of the debtor,
  • identification of license, spin-off or joint-venture opportunities,
  • the assessment of debtor-in-possession financing collateral,
  • the value of the interest of secured creditors, and
  • the analysis of proposed reorganization plans.
  • Valuation of financial assets is done using one or more of these types of models: (from Wikipedia)

    1. Estimate of discounted cash flow to determine the value of future income they expect to have the assets, discounted to their present value. (Increase your cash flow, reduce your DSO,  Commercial Collection Agency)
    2. The models to determine the relative value based on market prices for similar assets.
    3. Certain types of financial assets provides options of pricing models (e.g., investments with embedded options such as a callable bond, put options, warrants, employee stock options, call options ) and is a model of the current complex value. The most common models of option pricing is the Black-Scholes-Merton and lattice models.

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