VALUATION METHODOLOGY

Forensic Valuation: Our Methodology

A structured approach to asset valuation and financial analysis — designed to produce defensible, transparent outputs that withstand third-party scrutiny and legal review.

Valuation in distressed contexts is not a standard appraisal exercise. Asset condition, operational disruption, legal complexity, and stakeholder conflict all affect the approach. Our methodology is built around the principle that every valuation we produce must be explainable, defensible, and prepared for scrutiny.

The following methodology reflects our standard framework. Specific approaches are adjusted based on engagement purpose, asset type, jurisdictional requirements, and the level of distress or litigation involved.

METHODOLOGY PILLARS

Four Pillars of Our Valuation Approach

Every valuation engagement is structured around four consistent pillars — ensuring that the output is rigorous, transparent, and fit for its intended purpose.

Key Actions
  • Define engagement purpose and intended use of the valuation
  • Identify applicable legal and regulatory requirements
  • Determine scope of asset categories to be valued
  • Establish timeline and reporting format aligned with stakeholder needs
Key Actions
  • Apply income approach where operational data supports reliable projections
  • Apply market approach using comparable transactions and market evidence
  • Apply cost approach for specialized assets or replacement scenarios
  • Reconcile results across methods and document the basis for conclusion
Key Actions
  • Adjust revenue and expense assumptions for current operational reality
  • Account for deferred maintenance and capital requirements
  • Reflect market conditions and competitive positioning accurately
  • Document all adjustments and the basis for each adjustment made
Key Actions
  • Document all data sources, assumptions, and methodologies used
  • Prepare supporting schedules and sensitivity analyses
  • Structure the report for legal or regulatory review
  • Maintain workpaper files for independent audit or deposition support
ANALYTICAL FRAMEWORK

How We Build the Valuation

Our analytical process follows a structured sequence — from data collection through conclusion — with quality controls at each stage.

01

Data Collection & Verification

We begin by collecting all relevant financial, operational, and market data — and verifying its accuracy and completeness before it enters the analysis.

Includes
  • Financial statements and tax records
  • Operational reports and occupancy data
  • Property condition assessments
  • Market data and comparable transactions
  • Legal and regulatory filings
02

Operational & Financial Analysis

A structured review of the asset's operational performance, financial position, and competitive context — identifying trends, risks, and value drivers.

Includes
  • Revenue and expense trend analysis
  • Cash flow modeling and projection
  • Competitive market positioning
  • Operational efficiency assessment
  • Risk factor identification
03

Valuation Modeling

Application of appropriate valuation methodologies, with sensitivity analysis and scenario testing to ensure the conclusion is robust under varying assumptions.

Includes
  • Discounted cash flow analysis
  • Comparable sales and market multiples
  • Replacement cost and depreciation analysis
  • Sensitivity and scenario testing
  • Reconciliation across methods
04

Report Preparation & Review

Final report preparation with full documentation, explicit assumptions, and a clear conclusion — structured for the intended audience and use case.

Includes
  • Executive summary and conclusion
  • Detailed methodology and assumptions
  • Supporting schedules and exhibits
  • Sensitivity analysis and alternative scenarios
  • Workpaper documentation for audit trail
OUTPUT STANDARDS

What You Can Expect From Our Valuation Work

Our valuation outputs are governed by consistent standards — applied to every engagement regardless of size or complexity.

01

Transparency of Assumptions

Every material assumption is stated explicitly. No hidden adjustments, no unexplained conclusions.

02

Methodology Disclosure

The full methodology is disclosed, including the rationale for method selection and the basis for any adjustments made.

03

Sensitivity Analysis

Key variables are tested for sensitivity. The conclusion is presented with an understanding of how changes in assumptions affect the outcome.

04

Audit-Ready Workpapers

All supporting workpapers are maintained in a format suitable for independent audit, regulatory review, or legal discovery.

Specific output requirements vary by engagement purpose and jurisdictional standards. This overview reflects our standard approach.