9 Comments
 

errr...comps / cap rates ?

and what you intend to do on your liquidation if you don't know how to value to business, value each brick for scrap? land value (back to square one)?

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 
Oreos

errr...comps / cap rates ?

and what you intend to do on your liquidation if you don't know how to value ...

Personally, this is my opinion. Don't overthink it, your goal is to value the asset(s) first and foremost. If it were me, I would run a DCF. I have heard of loan-to-own models floating around out there, though.
 
all_in

Doesn't the valuation depend on the potential outcome? A debt for equtiy swap is just one outcome which would comprise a DCF or any other valuation of the properties (or portfolio) per se. Correct me if I am wrong.

Very wrong.

Why would the capital structure alter the outcome of the DCF, assuming constant WACC? Note: we're valuing the asset, not the security here.

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 
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