FAQs on Valuation Considerations When Valuing Distressed or Impaired Businesses
Valuation uncertainty is not to be confused with distressed or impaired businesses. Distressed or impaired businesses have unique characteristics impacting asset value; whereas, valuation uncertainty is concerned only with uncertainties that arise as part of the process of estimating value on a specific date. Distress may be a temporary operating characteristic of the subject company whereas impairment normally coincides with permanent adjustment.
COVID-19 and its market disruption is an example