Valuations-Corporate Restructuring Transactions, Exams of Corporate Finance

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Valuations‐Corporate^

CA RAJIV SINGH FCA,^ LIFA(USA),CISA(USA) CO‐FOUNDER^ EXPLICO Restructuring^ Transactions

CONSULTING

An idea that delivers …..

Question Presented

Corporate Restructuring Introduction^ A process through which a company changes the contractualrelationship^ which^ exists

among^ its^ creditors,^ shareholders, employees and other stakeholders It can be pre-emptive or forced It is no longer a rare or episodic event The^ business^ is^ intensely,

vigorously,^ bitterly,^

savagely competitive^ …^ Robert Crandall

Need For Corporate Restructuring

Valuing Companies in

Corporate Restructuring

Valuation Foundation^ The Business Plan^ The Business plan key components^ •^ Management^ •^ Core business units^ •^ Projected financial results^ The plan comes first, followed by capitalstructure and related valuation

The Business Plan – Core Business Units^ What^ business^ or

segment^ are^ part^ of

the^ ongoing business? What has changed:^ ™^ Products^ ™^ Services^ ™^ Cost^ ™^ Operating Processes What external factors must be considered:^ ™^ Competition^ ™^ Long term dynamics ( trade policies, commodity Prices,currency/ interest outlook, product shifting)

The Business Plan – Projected Results^ Review and Challenge Basic Assumptions:^ ™^ Revenue^ ™^ Operating Results^ ™^ EBITDA^ ™^ FCFF^ ™^ Working Capital & The Balance sheet^ ™^ Past Performance

vs.^ Projected Future Performance Other: ™ Market Share ™ What do projection imply? ™ Is Projection realistic? ™ Are inputs untethered to reality?

Business Valuation: Art or Science

Business Valuation: How to Define

Business Valuation Standards Need

Valuation Standards

Valuation Standards

Business Valuation Process