DISCOUNTED CASH FLOWS – PART 2, VALUATION AND THE FINANCIAL CRISIS
This is the second article in a three-part series summarising the main valuation methodologies used for the purposes of determining economic loss. In part one, I provided an overview of the market-approach methodology. I now turn to the income-based approach, focusing on the discounted cash flow (DCF) methodology.
In my previous article, I noted that a business is only worth what someone is prepared to pay for it. Under the market-approach to valuation, Company A’s worth may be informed at least in part by recent transactions in Company A itself and/ or businesses sufficiently comparable to Company A. The ability to apply usefully the market-approach ultimately depends on the availabili [...]
CAS Code Amendments in force as from 01.01.2012 – CAS arbitrators selected more freely
At its session of 15 November 2011, the International Council of Arbitration for Sports (ICAS) amended Article 14 of the Statutes of the bodies working for the settlement of Sport-related Disputes (Article S14) and abandoned the old regime which provided that with regard to the list of CAS arbitrators, the ICAS had to respect a specific distribution, namely 1/5th of the arbitrators selected from among the persons proposed by the International Olympic Committee (IOC), chosen from within its membership or from outside; 1/5th of the arbitrators selected from among the persons proposed by the International Federations for the Summer and Winter Olympics (IFs), chosen from within their membership [...]
Further Encouraging Developments in the Indian Treatment of Foreign Seated International Arbitrations
- By James Rogers, Fulbright & Jaworski LLP,
for YIAG
Yograj Infrastructure Ltd. Vs. Ssang Yong Engineering and Construction Co. Ltd. (on 1 September 2011)
As reported in this blog, in May 2011 the Supreme Court of India (SCI) moderated the controversial principle it established in 2002 that allowed the Indian courts to intervene in arbitrations held outside of India unless that possibility was expressly excluded by the parties (see Videocon Industries Ltd. Vs. Union Of India & Anr. (2011) 6 SCC 161). In a decision which should be welcomed by the international legal and commercial communities, on 1 September 2011 the SCI further restricted the scope for the Indian Courts to interfere in international arbitrations seated outside the country in i [...]
Anti-Arbitration: Would You Prefer a Harmonized Approach or a Just a Better One?
Conventional wisdom holds that one of the virtues of international arbitration is the ability to blend divergent procedures, generally referring to civil and common law traditions. The IBA Rules of Evidence, for example, seek to strike a balance among different legal cultures. “Harmonization” and “flexibility” are the terms commonly used to refer to this mixing of practices.
But if one particular approach can be shown to be superior for certain types of disputes, is employing a different or compromise approach actually sub-optimal?
I confess that I am as guilty as the next person when it comes to promoting the value of harmonization and flexibility when discussing international arbi [...]
Hong Kong’s arbitration year in review: a Christmas blog
2011 has delivered some significant arbitration developments in Hong Kong, most of which (with some exceptions!) have been undoubtedly positive. So, what were the highlights of the Hong Kong arbitration year – and what challenges might lie ahead?
First, Hong Kong’s new Arbitration Ordinance (cap. 609) came into effect on 1 June 2011 (blogged here). Drawing heavily on the internationally-recognised and accepted framework of the UNCITRAL Model Law, the new Ordinance was designed to provide maximum party autonomy and minimal court intervention. With a host of features including expanded provisions on interim measures and a new codified obligation of confidentiality, the new Ordinance sets [...]
David J. Bederman (1961-2011)
My friend David Bederman, the K.H. Gyr Professor in Private International Law at Emory Law School, has passed away. Emory Law School has offered kind remarks of his passing here, and here, and others offer their reflections on his life here, here, here and here.
Bederman was a prince of a guy, and a great international law scholar who loved the life of the law. I’ve known him for over twenty years and always appreciated his thoughtful analysis and kind words.
When I asked him several years ago what sustained him as he was battling cancer, he said that, in addition to his family, he loved to wake up every morning and think about his latest writing project. He wrote until his dying days, f [...]
