Extracting Value from M&A Disputes

At the close of August 2014, $1.1 trillion passed through American hands in M&A deals, while the global tally was $2.4 trillion. Those totals mark the highest year-to-date volume since 2007. While that’s great for the industry, not all these deals ended happily.

When anticipated value doesn’t materialize after the deal is done, disputes can arise, usually involving future payouts related to performance. While these disputes normally go before a judge experienced in such matters, some transaction agreements require the matter be heard by an accounting expert. The idea behind this change is that a neutral accountant will have more financial knowledge than a judge.

In these cases, Grant Thornton offers an article titled “Transaction Disputes: Extract More Value.” In the article, author Brian C. Moser, warns not to take the accounting expert for granted by assuming that he or she will simply understand certain “givens” of the case. In a series of six actions, Moser explains how approaching the accounting expert as a judge in your preparation can result in a more cost-effective resolution and an increased probability of realizing more value from the transaction.