Estimating class size without the shareholder register Abstract Axiom Forensics is often engaged by firms seeking to investigate the merits of commencing proceedings in relation to shareholder class actions. In addition to undertaking work on the quantum of claims (including by way of preparing indicative Event Study analysis), a relevant consideration prior to investing significant […]

Shareholder Class Actions Understanding The Size And Nature Of Loss Abstract Over the past five years Axiom Forensics has been engaged by lawyers acting for both plaintiffs and defendants in relation to a number of shareholder class actions. The claims made relate to the circumstances in which shares (or other equity securities) are acquired and/or […]

Class Actions Calculating returns to debenture holders Abstract Over the past four years Axiom Forensics has been engaged by lawyers acting for both plaintiffs and defendants in relation to a number of failed debenture schemes. These have included Banksia, Provident Capital, GR Finance and LKM, amongst others. In three recent matters (Provident Capital, LKM and GR […]

Comparable company analysis:  Importance of comparability Abstract In undertaking a valuation of a business it is common to reference other companies which are comparable. Comparable companies can be used as a valuation cross check and / or assist in developing the discount rate. The identification and selection of comparable companies is based on professional judgement […]

Shareholder class actions Residual Income Method Abstract In 2016, the Supreme Court of New South Wales held that shareholders in HIH were able to prove causation by establishing that the price of shares they acquired was inflated by the misleading statements of the company. In this article, Axiom outline a valuation methodology (the Residual Income […]

Assessing compensation: Class action claims due to financial advisor negligence Abstract In a previous article, Axiom outlined a number of alternate approaches that have been used in assessing compensation for negligent financial advice where the objective of the compensation is to restore the investor to the position they would have been in had the advice […]

Assessing compensation: Financial planning losses Abstract Axiom has been engaged to assess claims for compensation as a result of losses arising from negligent financial advice or inappropriate lending activities. The claims are brought by a class or an individual, against financial institutions or advisors. The events leading up to the loss are often very similar. […]

Mining valuations: Future commodity prices; the great unknown Abstract Commodity prices are a central element to any mining valuation and, due to their variability, are a source of uncertainty. Whilst a valuer has a number of alternatives from which to select when seeking future commodity prices, the common theme across each of these alternatives is […]

Loss calculations: Grossing up damages for tax Abstract In this article Axiom looks at a taxation consideration that may arise in undertaking an assessment of damages. In circumstances where an award of damages forms part of the assessable income of the successful plaintiff, it may be appropriate to gross-up the award for damages by the […]

In this article Axiom compares and contrasts the two discounting valuation approaches – the residual income valuation (RIV) model and the traditional discounted cash flow (DCF) model. The article illustrates that when valuing a business, in certain circumstances the RIV model is a more robust and appropriate model than the DCF method. Discounting valuation methods: […]