| Determining a Distressed Debtor Company's Discount Rate
Program Type: Recorded Webinar (Audio, PPT)
Program Level: Basic
Prerequisites: Business valuation and business brokerage experience. Appraisal background in both real and personal property.
Advanced Preparation: The author's article that was prepared by BVR, Volume 20, No. 1, January 2014 (Part 1); and BVR, Volume 20, No. 2, February 2014 (Part 2), may be a useful but not essential pre-read. However, the author will develop further and expand upon the issues presented in these BVR articles.
Delivery Method: Group Internet-Based
CPE Credits: One (1) Hour
Fields of Study: Accounting
Shipping Weight: 0lbs. 0oz.
This webinar will discuss the valuations of distressed debtor companies based on discounted cash flows and will consider the impact of the date and stage of the debtor company’s distress. The presentation will describe how the financial analyst derives the cost of capital for a distressed debtor company.
The webinar will continue to develop the themes set forth by the author in the article that was prepared by BVR, Volume 20, No. 1 ,January 2014 (Part 1); and BVR, Volume 20, No. 2, February 2014 (Part 2). However, the author will develop further and expand upon the issues presented in these BVR articles. The presentation will not simply be a rehash of the articles.
After completing this webinar, attendees will be able to:
- Compare and contrast a distressed debtor company, a reorganizing debtor company, and a reorganized (formerly distressed) debtor company
- Explain valuations of distressed debtor companies based on discounted cash flows
- Demonstrate the significance of the point in time at which the valuation is performed
- Describe the methodology to arrive at the appropriate discount rate
- Explain how to derive the cost of equity and the cost of debt
- Compare and contrast the current approaches to determining risk free rates and risk premiums with special emphasis on evaluating the company specific risk of a distressed, reorganizing, and/or reorganized debtor company
Who Should Attend
Persons involved with distressed companies either as business valuators, attorneys, management, accountants or auditors
Michael Pakter, MAFF, CVA, CPA, CFF, CGMA, CIRA, CDBV, CFE, CA
Mr. Michael Pakter is a Certified Public Accountant, registered and licensed in the State of Illinois. The AICPA has recognized him as additionally Certified in Financial Forensics and Management Accounting. He earned the NACVA Certified Valuation Analyst designation, having completed its business valuation specialty program, and its Master Analyst in Financial Forensics designation, having completed its business and intellectual property damages specialty program.
The Association of Insolvency and Restructuring Advisors awarded Mr. Pakter its Certified Insolvency and Restructuring Advisor certificate, recognizing knowledge and proficiency related to situations involving distressed and/or insolvent entities, and its Certification in Distressed Business Valuation, a certification focused on the valuation of distressed and/or bankrupt companies.
Mr. Pakter is a Certified Fraud Examiner, which credentials denote proven expertise in fraud prevention, detection, and deterrence. He earned a Chartered Accountant credential and his undergraduate academic education was in accounting, auditing, commerce, and business economics.