This workshop provides a practical foundation in corporate finance and valuation. Designed for judges without prior training in finance, it uses clear language and accessible examples to explain the financial concepts that commonly arise in business litigation.
The course introduces the time value of money, discounted cash-flow analysis, and the relationship between risk, expected return, and the cost of capital. It then compares the principle approaches to valuing companies and securities, including book value, market value, fundamental value, comparable-company analysis, and comparable-transaction analysis.
Particular attention is given to the assumptions and judgments that drive valuation results, such as projected cash flows, discount rates, terminal value, capital structure, and the selection of comparable firms or transactions. Participants will consider why qualified experts may reach substantially different conclusions and how courts can evaluate the reliability and relevance of their analyses.
Drawing on applications involving fairness opinions, appraisal proceedings, and valuation disputes, the workshop equips judges to engage critically with financial evidence and expert testimony. The aim is not to train participants to perform valuations themselves but, rather, to help them become informed and discerning users of valuation evidence.
This program is co-hosted by the Program on Financial Markets.
Questions? Contact [email protected] or 703-993-2566