Valuation analysis is a substantial part of securities and financial markets litigation. The analysis used to value complex security instruments requires a thorough understanding of the facts and issues. To this end, The Brattle Group combines in-depth industry experience and rigorous analyses using sound economic and financial principles to help clients answer complex valuation and financial questions in litigation.
Valuation analysis is a common approach in disputes associated with bankruptcies, buyouts, divestitures, initial public offerings, going-private transactions, mergers and acquisitions, private placements, and reorganizations. Valuation analysis is also common in disputes that focus on debt, derivative securities, and intellectual property rights.
The Brattle Group’s litigation experts have extensive experience with valuation analysis such as appraisal of fair value, estimation of cost of capital, and disputes associated with mergers and acquisitions. Our expertise is grounded in a thorough understanding of finance and economics, accounting, financial products, capital markets, regulation, and industry custom and practice.
On behalf of the special committee to the board of directors for a major international telecommunications provider in bankruptcy proceedings, The Brattle Group provided forensic analysis of the economics, financial reporting, and accounting associated with the company’s bankruptcy. The engagement involved contemporaneous review and analysis of telecom market structure and trends, capacity and pricing projections in international markets, business justification of certain transactions, and appropriateness of the accounting for these transactions. The project also involved econometric event study analysis and the estimation of the impact of quarterly earnings announcements on equity prices and enterprise value.
The Brattle Group built real options models for the drug development process for 19 drugs in various stages of clinical progress. We valued the profit split on the potential returns of these drugs between small biotechnology firms and the large pharmaceutical firms with whom they entered into business alliances. We analyzed the terms of the development contracts and the assumptions on revenues, manufacturing costs, clinical trial expenses, cost of capital, and itemized income statement expenses.
Industry Custom and Practice– Overview – Anti-Money Laundering – Bank Regulation – Commercial Lending – Financial Services Risk Management Processes – Investment Management Valuation, Due Diligence, and Disclosure Practices – Market Trading Activities – Mortgage Banking / Securitization – Suitability – The Duties and Responsibilities of Broker Dealers – The Duties and Responsibilities of Hedge Fund Administrators – The Duties and Responsibilities of Securities Custodians
Complex business and legal matters require intellectually honest and analytically rigorous solutions that are thoughtfully developed and clearly communicated. We apply economic and finance principles with uncompromising quality to achieve clarity in the face of complexity. Independent analysis, responsive execution, and compelling presentation. That’s Brattle. That’s the Power of Economics.