This guide is aimed at financial analysts, bankers, accountants and other practitioners involved in the complex task of company valuation. It provides insights for managers at every level of a corporation into how company values can be managed and maximized.
During the recession from 1981 to 1983, seven billion-dollar firms filed for bankruptcy, but that number skyrocketed to thirty-three from 1988 to 1992. The demand for expertise in predicting, managing, and profiting from corporate distress has never been greater. The Second Edition of Corporate Financial Distress and Bankruptcy by Edward I. Altman offers a comprehensive array of tools and techniques for navigating financial crises. It includes updated insights on distressed firm investing through a unique index measuring defaulted debt price movements and market performance. The book presents robust statistical models for assessing distress potential, alongside a powerful framework for bank loan valuation that establishes criteria for loss reserves and pricing guidelines. An innovative technique for present value assessment helps banks comply with accounting standards requiring market value reporting. Turnaround strategies are detailed, including a case history of GTI Corporation, while the literature review evaluates recent scholarly work on distressed firms. Additionally, the international dimension features a bibliography of failure prediction models applied globally, encompassing both industrialized and developing economies. In a time of increasing bankruptcies, this edition provides essential guidance for navigating the complexities of corporate financial distress.
Leading contributors from both the academic and business worlds combine their theoretical and real-world interests in this comprehensive, up-to-date compendium on corporate finance. Among the topics covered are financial forecasting, planning and control, sources of funds, capital budgeting, and pension and profit sharing. This volume also delves into the area of ``modern finance,'' covering financial decisions for multinational enterprises, international cash management, bankruptcy and reorganization, mergers and acquisitions, and small business financial management.