Abstract
In restructuring contexts, particularly in relation to
Restructuring Plan relevant alternatives and Scheme comparators, it
is common to see discounts applied to valuation estimates derived
on the basis of the conditions of an orderly sales process. These
discounts are often material and consequently can have a
significant impact on the valuation conclusions. It is therefore
essential that the valuer is able to clearly articulate the
circumstances of the sales process envisaged and how it deviates
from the conditions of an orderly sales process.
In this context, we set out a summary of the key factors
to consider when forming a view on an appropriate discount, examine
a selection of discounts previously used by valuers, and summarise
the skills and experience of relevant FTI Consulting
experts.
