Philip Saunders Associates (PSA) provides analysis, consultation, and expert testimony on valuation issues and methodology. PSA assignments have related to standards of valuation and also to their practical application in difficult cases. Assignments have included exposition of valuation methodology and its application, feasibility analysis, analysis of ability to pay, and allocation of financial responsibility.
- For cement manufacturing company in stockholder dispute, PSA reconciled $43,000,000 difference in estimates of value. Using opposing expert’s discounted cash flow model, PSA demonstrated that, if expert had used more reasonable assumptions, value estimates would have been the same. Presentation reduced complex analysis to key, comprehensible points, explaining to arbitrators why company’s valuation was correct. Result was complete victory for client.
- For multi-dealership auto retail company PSA estimated ability to pay in leveraged buyout. PSA created financial model of company, ran simulations based on historical industry sales patterns, and estimated probabilities of default under varying levels of debt service. PSA’s recommendations provided basis for structure and payment terms of buyout agreement.
- For shareholder of company sponsoring hi-tech conventions, being sued for $40,000,000 underpayment in private sale of stock, PSA researched professional standards and literature, demonstrating that plaintiff's expert's methodology was not consistent with accepted valuation practice. Jury awarded plaintiff zero.