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Conclusion

  • T. H. Donaldson

Abstract

For years banks assessed the credit standing of their borrowers on the basis of ‘liquidation analysis’, also often referred to as ‘gone-concern analysis’; some still do. Liquidation analysis, in its simplest form, values a company on what it would be worth in liquidation, i.e. at forced-sale prices. Unless this valuation shows that the company could pay its debts even in liquidation, the bank will not lend; or at least that is the theory.

Keywords

Cash Flow Balance Sheet Trade Creditor Equity Investor Equity Holder 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© T. H. Donaldson 1992

Authors and Affiliations

  • T. H. Donaldson
    • 1
  1. 1.European Credit Policy CommitteeJ. P. MorganUK

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