Valuation is integral to most of the matters with which Compass Lexecon is involved, from litigation and other disputes to mergers and acquisitions. Compass Lexecon stands apart from other valuation professionals in our use of market evidence, such as the contemporaneous actions and analyses of market participants, in valuation exercises.
Taking an economic approach to valuation, Compass Lexecon economists are proficient in the full spectrum of standard valuation methods, including discounted cash flow analysis models and comparable company/comparable transaction methodologies. Because of our expertise in using market evidence, Compass Lexecon economists have the ability to provide insight in cases where standard valuation methods may be less appropriate.
We understand that, while valuation frequently involves judgments and assumptions, improper (or incomplete) assumptions can lead to improper valuations. Reasonable and appropriate assumptions must be based on careful economic analysis and the systematic review of available evidence. Our economists test assumptions against market evidence and, where possible, compare findings from valuation models against any and all market evidence as a check on our conclusions.
Our economists have testified or advised clients on valuation issues in a range of matters, including:
- Disputes Concerning the Value of Interests in Privately Held Companies
- Fraudulent Conveyance
- Viability of Proposed Plans of Reorganization
- Transfer Pricing
- Appraisals and Entire Fairness Disputes