An OUTCOME-CRITICAL VALUATION™ (OCV) involves one or more of the following:
• Substantial Economic Interests
• Potential Conflicts of Interest
• Possible or Pending Litigation
• Importance of Achieving a Defensible Conclusion
• Complex Issues
Company management, counsel, Boards of Directors and Special Board Committees are periodically involved in a transaction or other circumstance giving rise to an Outcome-Critical Valuation. Those situations call for a valuation based on thorough and soundly reasoned analyses, which are logically presented and strongly defensible by the firm performing the work.
Cherry Tree brings an unmatched set of qualifications and perspectives to OCVs. Its personnel have been making and assessing OCVs and applying them in important business situations for decades. Our experience results from many years of investments, financings, transactions, advisory projects, and governance and operating roles spanning dozens of industry segments and hundreds of companies.
>Download OCV brochure (pdf 372k)
A Valuation Case Study
On April 21, 2006, Guidant Corporation was acquired by Boston Scientific Corporation. This followed two failed acquisition attempts by Johnson & Johnson, beginning in late 2004. Cherry Tree has assembled a Case Study which reviews and compares the supporting analyses underlying the eight fairness opinions provided by the four investment banking firms involved in the transactions.
This study should be instructive for company directors, senior management and company counsel.
>Download OCV Case Study brochure (pdf 884k)
The Valuation of “Restricted Stock”
An issue common to many business valuations is the value of “restricted stock” in the subject company. More specifically, the question usually relates to the appropriate discount to apply to the calculated value of freely tradable and fully liquid shares in the same company. As you may know, this discount for lack of marketability is a subject of controversy in the valuation community.
>Download "The Valuation of Restricted Stock" (pdf 48k) |
