Asset Valuations for Restructuring and Insolvency Proceedings

How do asset valuations impact restructuring and insolvency decisions?

The numbers matter. Whether a company pursues a Company Voluntary Arrangement (CVA), enters administration, or faces liquidation depends partly on what capital its assets are able to generate.

Secured lenders base their stance on security valuations, creditors choosing from rescue proposals weigh the numbers against liquidation scenarios, and administrators fulfilling their statutory obligations need defensible figures that demonstrate they have maximised returns.

Without reliable valuations, decision-making becomes guesswork. With them, all parties can assess their positions rationally and reach sensible conclusions.

Who can get assets valued for restructuring and insolvency proceedings?

Insolvency practitioners

Licensed insolvency practitioners appointed to cases must value assets correctly to discharge statutory duties and show they have acted properly throughout their appointments.

Company directors

Directors facing insolvency need to understand what assets are genuinely worth before choosing between rescue attempts and formal proceedings.

Secured lenders

Banks holding charges over business assets instruct appraisals to quantify their exposure and decide whether to support restructuring or enforce security.

Solicitors and advisors

Professional advisors guiding distressed businesses through their options use independent valuations to build realistic pictures of available choices and likely outcomes.