Page 70 - Bankruptcy and Reorganization Services

iii. Wind-down costs should potentially be considered, depending on the purpose, standard,
and premise of value.

b. The appropriate standard of value for each asset is not used.

i. Each asset should be looked at for its highest and best use.

ii. The specifics of the valuation assignment need to be considered.

iii. Assets need to be reviewed for their actual condition and operation.

c. Obsolescence is not considered. Each asset should be reviewed for functional, technological, and
economic obsolescence.

d. Third-party appraisals and other data relied upon are incomplete or outdated. Valuation analysts
may work with historical data (comparable sales and investor surveys), which lag the market by
six months or more.

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