Valuation Services and Consulting

Steps for producing a valuation for a bank loan to a private company:

1. Gather and review financial and legal documentation.
2. Note key loan parameters such as: interest rate, maturity date, type of loan (bullet or amortizing), first or second lien, financial covenants, up-front and other fees, pre-payment penalty.
3. Note key financial performance parameters: EBITDA, income, margins, cash flow, balance sheet (historic, current and projected).
4. Analyze key financial ratios: leverage, interest coverage, loan to value.
5. Perform DCF analysis.
6. Compare company to similar publicly traded companies.
7. Compare loan to publicly traded similar debt instruments.
8. If the company is distressed, determine the value of its assets.
9. If the company is in bankruptcy, determine the probability and timing of recoveries.

For competitively priced hedge fund portfolio valuations, business development corporation and private equity valuation services and consulting, please contact:

Joshua Persky
tel: 917 650 8700
email: joshua.persky@sloan.mit.edu