Valuation practices under business rescue circumstances in South Africa
A business rescue plan should indicate to creditors that a company is worth more ‘alive’ than ‘dead’. Conventional valuation methods have the underlying assumption that the business is a going concern (based on liquidity and solvency tests). However, a company in rescue/ liquidation isn’t necessarily a going concern, leaving a grey area in terms of valuation.
See this original research on Valuation Practices that was published in the SA Journal of Economic and Management Sciences earlier this year.