The Changing Landscape of Valuation Due To COVID-19
To Our Valued Clients,
Months ago, no one could have predicted the business and social environment we all are currently living in. The last couple of months have certainly been life-changing and the way we conduct business is evolving and forcing us all to learn new ways to adapt. We have seen the court systems close for an extended period and drastically change the schedules for many legal matters that we are involved in. This has added another layer of uncertainty for attorneys, clients and experts.
Our goal is to provide you and/or your clients with up to date resources that will help you make an informed decision. While we do not have all the answers to the COVID-19 pandemic yet, we are actively learning and researching answers to provide you with the best and most up-to-date content possible. Please feel free to reach out to any member of Vallit if you have any questions or would like to discuss COVID-19. We are happy to discuss.
Vallit professionals are experienced in using virtual deposition and meeting technology. Even prior to the COVID-19 pandemic, members of Vallit have participated in virtual meetings to meet client needs. We have been in close contact with national and local court reporting services and are familiar with their technology and software. We are ready and waiting to assist you on the next matter. We Are: Masked and Ready
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Learn About The Impact Through Webinars
Vallit Advisors hosted an eight-part webinar series in partnership with The Anne Arundel Bar Association, The Baltimore County Bar Association, The Bar Association of Baltimore City, The Bar Association of Montgomery County, The Howard County Bar Association and The Bar Association of Montgomery County.
Each webinar focused on the impact that COVID-19 has had or will have on various legal practice areas. If you missed the webinar series, you can access the recordings below.
- COVID-19: Assessing the Impact on Real Estate Values
- Bankruptcy During COVID-19
- Divorce During COVID-19: So, the Quarantine Didn’t Make You and Your Spouse Closer?
- The Perfect Storm: Why Now May be the Best Time for Estate Planning
- Cyber Issues During COVID-19: Understanding the Legal Obligations, the Risks and How to Mitigate Them
- Breach of Contract and Damages During the Indefinite Pandemic
- The New Business Normal: Working Remotely and the Legal and Accounting Issues You Need to Know About
- Considerations of Tax and Valuation Issues During COVID in 2021
Looking for Additional Information?
The team at Vallit is ready to provide information and assistance for your unique situation.
Experienced Assitance WHen you Need It
It is unfortunate but expected that there will be an increase in bankruptcy filings as a result of COVID-19. There will be creditors right claims, plan of reorganizations and countless hours in bankruptcy court analyzing and determining the best plan for the debtor and creditors. Vallit has extensive experience in bankruptcy matters and are ready and able to assist you in these matters.
Up To Date With Trends & Changes
The COVID-19 pandemic is changing the business valuation landscape. While we are still trying to determine all of the effects due to COVID-19, we are generally seeing a number of changes to business valuations. Whether it be changes to cash flows, discount rates or market multiples, business valuations before and after the pandemic are different. Vallit is feverishly researching and continue to learn all the aspects and effects of COVID-19 on business valuations.
Be prepared: Value THe Assets Now
We have spoken to many estate planners and the general consensus we have heard is that it is a great time to get some estate planning work done. The economic downturn has in most cases, but not all cases, generally cause changes in business valuations and the factors associated with business valuations. These factors may include cash flows, discounts for control and marketability and market multiples. In addition, we also have a pending election in November 2020 in which the U.S. may see changes to its tax structure. Now may be the best time for a while to get estate planning done and get valuations for the various assets owned in the estate.
Providing Help after THe Halt
The economic shutdown has caused many businesses, construction projections and assignments to come to a complete halt. Owners that had expected cash flows and profits upon the completion of a project or assignment now have to wait longer for an indefinite period. This likely has caused harm to the owner or any of the contractors. For many business owners, the interruption resulting from COVID-19 has severely damaged the business and in some cases may be fatal. Whether it be claims against your insurance company or any particular entity, we have the experience to calculate these damages. Whether it is lost profits, lost value or some other damages measure, we have the experience to handle any case resulting in business interruption.
Let Our Team Help Guide You
Reach out to the Vallit team for high quality assitance during a uncertain time.
Proprietary Models To Find and Measure Fraud
Unfortunately, fraud can occur at anytime and anyplace it is often the person that you least expect to be committing fraud. In any fraud case, there is a mix of the three elements of fraud: (1) rationalization, (2) pressure, and (3) opportunity. At Vallit, we have developed proprietary models that help us identify fraud and determine the extent of fraud. With our extensive experience in fraud investigations, we are able to apply our models and processes to determine fraud in an efficient and effective matter. Fraud typically increases during economic downturns.
What did the Shut Down Cost you?
Breach of Contract
As a result of the economic shutdown, we expect that a number of contracts that be breached as a result of one party being unable to perform the requirements of the contract. This may be intentional in some instances and unintentional in other instances. Regardless of intent, the performing party will likely be damaged and will likely have a claim against the defaulting party. Damage remedies may include lost profits, lost value or some other measure of damages. The contract may have provisions for liquidation damages that may need to be interrupted or calculated by an expert. We have extensive experience with breach of contract claims and are ready to assist you in these matters.
Our response to COVID-19 & Breach Of Contract
The Bridge between Real Estate Appraisal and Business Valuation
Based on our conversations with real estate appraisers, there is not doubt that real estate values will changes as a result of COVID-19. Although Vallit does not perform real estate appraisals, we do utilize these appraisals when performing a business valuation for a real estate holding company or an entity that has real estate on its balance sheet. We have been in contact with real estate appraisers and are on top of how COVID-19 is impacting real estate appraisers and our business valuation analysis. In addition, we are monitoring how COVID-19 is impacting discounts for lack of control and discounts for lack of marketability.
The New Virtual Reality
Court Cases & Court Reporting
Members of Vallit have testified in state, federal and international courts. We have been apart of depositions where we sat in an office in the U.S. but other parties to the deposition were halfway across the world. With COVID-19, we expect to see more virtual depositions and we expect this trend to continue far beyond this current pandemic. We have been in communication with various court reporting services and are versed in the software packages offered for virtual court reporting. We have invested time and energy into these new methods for court reporting and aim to be resources for attorneys as they navigate these new times.
Our response to COVID-19 & Court Cases & Reporting
Ready To Get Started?
Reach out to the Vallit team for high quality assitance during a uncertain time.
The contents above are purely educational in nature. The information contained within the website of Vallit Advisors, LLC should not be assumed to be representative of the views and opinions held by Vallit Advisors, LLC. Information found on this website is not intended to be legal advice, it is not intended to create or solicit instructions of any kind and should not be treated as such. By accessing this web site, you are agreeing to be bound by the web site Terms and Conditions of Use