Page 8 - M & A Disputes
P. 8
Covenants ...................................................................................................................................................... 21
Conditions to Closing ................................................................................................................................... 22
Indemnity Clause .......................................................................................................................................... 22
Disclosure Schedule ...................................................................................................................................... 23
M&A Disputes .................................................................................................................................................. 23
Preacquisition Disputes ................................................................................................................................. 23
Postacquisition Disputes ............................................................................................................................... 23
Purchase Price Adjustment Disputes ............................................................................................................ 24
Earnout Disputes ........................................................................................................................................... 24
Claims for Indemnification ........................................................................................................................... 24
The Role of the Forensic Accountant in Preventing, Supporting, and Adjudicating M&A Disputes .............. 24
Contract Vetting ............................................................................................................................................ 26
Dispute Support ............................................................................................................................................ 26
ADR Arbitration and Mediation ................................................................................................................... 27
Chapter 2 — Postclosing Purchase Price Adjustments .................................................................................. 29
Overview ........................................................................................................................................................... 29
Target Working Capital .................................................................................................................................... 30
Preparation of the Closing Balance Sheet ......................................................................................................... 31
Objection Notice ............................................................................................................................................... 31
Access to Books and Records ........................................................................................................................... 32
Basis of Accounting .......................................................................................................................................... 32
Historical ....................................................................................................................................................... 32
International Financial Reporting Standards ................................................................................................ 33
GAAP ............................................................................................................................................................ 33
GAAP Consistently Applied ......................................................................................................................... 33
Adjustment to Target or Represent True Economic Change ............................................................................ 34
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