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 thatâ€™s great for the industry, not all these deals ended happily.
When anticipated value doesnâ€™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 â€śTransaction Disputes: Extract More Value.â€ť 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 â€śgivensâ€ť 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.