Page 10 - M & A Disputes
P. 10
Unknown to the Party Seeking to Terminate the Deal ..................................................................................... 51
Case Law Examples .......................................................................................................................................... 52
Valuation Issues to Consider in MAC Claims .................................................................................................. 53
Summary of the Practitioner’s Role in Analyzing a MAC Claim .................................................................... 53
Chapter 5 — Representation and Warranty Disputes ................................................................................... 54
Calculating Economic Damages — Indemnification Claims ........................................................................... 54
Indemnity Provisions in Acquisition Agreements ............................................................................................ 55
Identification of Material Misrepresentations and Fraudulent Misrepresentations .......................................... 56
Identifying Indications of How the Deal Was Done ......................................................................................... 57
Measuring Damages: Dollar for Dollar Versus at the Multiple ........................................................................ 58
Key Considerations in Assessing Damage Amounts Under Indemnity Claims ............................................... 60
The Practitioner Should Evaluate Whether the Buyer Overpaid for the Target ........................................... 61
The Practitioner Should Evaluate How the Target Company Is Performing Subsequent to the Acquisition
....................................................................................................................................................................... 61
Case Study: ABC Co. ....................................................................................................................................... 63
Chapter 6 — Role of the Neutral Practitioner ................................................................................................. 65
Introduction and Background ........................................................................................................................... 65
Engagement Acceptance Issues ........................................................................................................................ 66
Commitment to Neutrality ............................................................................................................................ 67
Relationship Check and Disclosure .............................................................................................................. 68
Firm Relationships ........................................................................................................................................ 68
Individual Relationships ............................................................................................................................... 68
Professional Conflicts ................................................................................................................................... 68
Engagement Letter ............................................................................................................................................ 69
Identification of the Contract From Which the Dispute Arose ..................................................................... 69
Identification of the Specific Disputed Issues Within the Neutral Practitioner’s Scope .............................. 70
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