Monte Carlo Simulations for Distressed Companies

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Training Event Transcripts
March 4, 2015
R. James Alerding, CPA/ABV, ASA
Matthew Bernstein

Summary

Valuing distressed companies presents obstacles not encountered when valuing the normal operating company. The valuation analyst needs to identify and take these obstacles into account in performing a valuation of a distressed company. Even when that is done, however, there are uncertainties about the ultimate fate of the distressed company that are difficult to take into account. That is where the Monte Carlo simulation comes in. Join Jim Alerding, valuation expert with Alerding Consulting, LLC, and Matt Bernstein, valuation expert and Monte Carlo simulation expert with Dixon Hughes Goodman LLP, as they discuss not only how to value a distressed company, but also how to use the Monte Carlo simulation to further define the solutions to such a valuation to refine the valuation conclusion.
Monte Carlo Simulations for Distressed Companies
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