Bankruptcy happens.

When the business plan doesn’t go as predicted or when factors intervene that are beyond one’s control, the need to minimize damage and work out a solution to get the wheels moving again requires expert guidance.

Distressed assets are those assets sold at a cheaper than market price because the owner is compelled to sell. These are often a part of a bankruptcy or other insolvency situation and require specialized knowledge. Additionally, valuation analysis in a workout, bankruptcy or insolvency setting is often subjected to significant scrutiny. An entity involved in a workout, restructuring or Chapter 11 solution needs the support of experienced, independent professionals. BVC can assist with valuation services for companies in distressed settings, from pre-filing to post-emergence.

Pre-Filing, Workout and Restructuring Services

BVC provides the following services related to distressed assets and bankruptcy:

• Advisory services for an entity’s management, auditors, investors and lenders when asset values or the solvency of a business enterprise is an issue
• Solvency and fairness opinion services for entities looking to restructure debt or equity, or engage in another transaction requiring an independent opinion
• Valuation services in accordance with ASC 852, Reorganizations and ASC 820, Fair Value Measurements and Disclosures
• Valuation services for purposes of IRC §108(b), Debt Forgiveness, and/or IRC §382, Net Operating Loss Limitations and Built-in Gains

We also provide tax restructuring and reorganization services in accordance with various Internal Revenue Code sections, including:

• 351 and 355, Legal Entity Valuations
• 368, Taxable or Nontaxable Reorganizations
• 165, Worthless Stock Deduction

Chapter 11 Services

Our specific valuation and consulting services related to Chapter 11 proceedings include:

• Analysis and testimony for debtor-in-possession financing negotiation, relief from automatic stay proceedings, use of cash collateral and other disputes that may arise in the early stages of filing
• Valuation in conjunction with sales of assets or business segments, including the sale of all or substantially all assets of an estate under Section 363 of the Bankruptcy Code
• Best interest analysis, liquidation analysis and related valuation considerations in support of (or in opposition to) a debtor’s reorganization plan
• Valuation of assets securing a claim
• Valuations and solvency analysis in support of or in connection with avoidance action litigation

We can assist with all issues relating to value in a Chapter 11 case. We provide valuation reports and expert testimony regarding business enterprise valuations, asset value appraisals and the value or solvency of a going concern. We have worked with all constituencies including debtors-in-possession, financial or restructuring advisors, committees, secured and unsecured creditors, asset purchasers and other parties in interest.

Post-Emergence Services

When companies emerge from Chapter 11 they require services specific to their precise situation. We provide service for companies undergoing restructuring or emergence from Chapter 11, which include:

• Critical early advice regarding asset identification, asset aggregation and methodology selection to support reporting obligations under SOP 90-7/ASC 805
• Valuation of invested capital, reporting units and tangible and intangible assets to assist emerging companies in establishing beginning balance sheets or meeting additional fresh start accounting requirements

Why BVC?

BVC has the experience needed to provide the thorough, well-supported and industry-specific analyses companies need and we understand the complex legal processes involved. With our focus on valuation services, we are able to deliver independent and objective value conclusions. BVC is unaffected by the conflicting interests often held by banks, financial advisors and other professionals for whom valuation is not a major focus of their core service offerings.