Energy

Asset and Contract Valuation

Correct valuation of assets and contracts is critical to the successful conclusion of numerous transactions, mergers and acquisitions, and disputes. NERA brings expert capabilities to the resolution of complex valuation and complex modeling problems. Our consultants use advanced techniques in economics, finance, statistics, and econometrics to improve the quality and accuracy of an appraisal.

We provide model auditing services for potential acquisitions, from checking the functional operation of complex models to advising on model inputs and assumptions such as the cost of capital and input and output prices. (NERA’s cost of capital experts regularly provide advice across a range of industries on the regulatory cost of capital.)

NERA also reviews existing contracts to evaluate risks and liabilities, to identify where there are gaps leaving unmitigated liabilities, and to assess their robustness in light of the current conditions and likely market developments.

In dispute resolution and damages calculation, NERA experts apply economic principles, recognized economic and finance modeling techniques, accounting principles, statistical techniques, and our wide industry experience. We have extensive experience with estimating compensation using recognized valuation methods such as book value, replacement value, liquidation value, and discounted cash flow.