In the 2008 Global Financial Crisis, bad residential mortgages were agglomerated, packaged, rubber-stamped with a higher security rating than was merited and then sold as securities to investors. Massive construction companies are comparable in that their underlying value is linked to their order book of agglomerated contracts. This packaged group of contracts is analysed and then – much like in 2008 – rubber-stamped with a value. Do investors and the financial markets truly understand the underlying value of massive construction companies? In light of Carillion, is it time to ask whether valuation techniques used by auditors/valuers are sophisticated enough to examine the underlying, deep-down value of massive construction companies. Also, if it happened to Carillion, why can’t this happen to another massive contractor?
This great achievement marks the second year running in which an SMB client has won this prestigious award, with client Curious Films winning it last year.
Read moreSimons Muirhead Burton is pleased to congratulate our client Happy Town Productions Limited on the release of Happy Town series 1 on Sky Kids.
Read morePartner and head of SMB’s Criminal department, Phil Smith, featured on Nine News Australia yesterday, discussing the Sam Kerr trial on Nine News, on Australian prime time television.
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