Bankruptcy & Restructuring

Brean Strategic Advisors is routinely engaged to support Estates, distressed firms, creditor and equity holders and committees with financial and strategic advisory services, expert testimony, opinion and fairness letters, litigation consulting in the prosecution or defense of preference actions and expert testimony.  Our team cut its teeth in the aftermath of the financial crisis, where our expertise in structured credit, residential mortgage and consumer loans and securities and derivatives made us an integral member of the teams unwinding and supporting failed financial institutions. In the bankruptcy and restructuring context, the Brean Strategic Advisors team is often tasked with determining and realizing value, identifying disposition opportunities and detailing our findings in reports for creditors and courts alike.

Valuation

Brean Strategic Advisors is well qualified to assess and opine as to the value of complex illiquid assets held by distressed firms.  We regularly build financial models for firms, investments and projects across industries.  Our models are grounded in assumptions citable to a firm’s own data and corroborated by recognized industry sources.  Because our valuation reports are frequently subject to challenge by counterparties or in court, we document our methodology, assumptions and results in a manner intended to withstand challenge. 

In reviewing and building models, Brean Strategic Advisors seeks to:

  • Develop detailed cashflow models.
  • Determine appropriate market-based inputs for credit spreads, availability. 
  • Review model drivers and sensitivities of income and values to changes in key assumptions.
  • Assess the viability of assumptions embedded in short and long-term cashflow projections.
  • Comfort the value of assets and liabilities on the balance sheet. 
  • Identify the risks of looming debt maturities and the viability and likely terms of refinancing.
  • Flag opportunities for restructuring.  

Financial Document Review and Analysis

Bankruptcy and restructuring cases involve extensive review of financial transactions leading up to the distress.  A combination of proprietary technology, market and data expertise makes the Brean Strategic Advisors team uniquely qualified to review and explain the significance of technical financial production.  We are routinely tasked with analyzing complex models, databases and financial documents underlying complex transactions and securities.  Our objective is to explain the significance of the models we look at and their relevance to key issues in a case, given our understanding of the allegations and legal considerations of interest to counsel.  We summarize our findings in presentations grounded in citations and screenshots of the relevant formulae from the materials we review. 

Our team’s spreadsheet skills are honed building and running models for securities and loans used on the regulatory stress testing and valuation side of our business.