Valuing A Distressed Company

This problem practices a core restructuring concept, how to frame valuation when a business may either continue operating or be broken up. Candidates need to understand the two main perspectives interviewers expect, going concern value and liquidation value, and how each changes the way you think about cash flows, discount rates, comparable companies, and asset value. It matters in investment banking interviews because distressed valuation is central to restructuring work, where the analyst must assess downside protection, recovery potential, and whether the business is worth more as an operating company or as a set of assets.