Valuing assets via scrap and collateral creates asymmetric downside protection
Adam Shapiro · Adam Shapiro – Post-Breeding Grounds for Rising Stars and Families (Capital Allocators, EP.319) · Jun 5, 2023 · at 11:19
Adam Shapiro, Managing Partner of East Rock Capital, describes the underwriting framework he learned at Goldman Sachs's Special Situations Group.
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“The use of structure and the fact that diversification could work in your favor, the way you could value assets, not just on EBITDA, but on a variety of things, which included collateral value, scrap value, or alternative use type of value. And so that you could look at a possible investment and just see it lots of different ways to win. And you could narrow down the ways you could lose.”
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