Case Studies
J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida
Read MoreThe parent company (seller) sold its energy and power generation division to an international buyer (buyer). Under the asset purchase agreement (APA), the buyer acquired specific assets and assumed certain liabilities related to the division of the seller. As per the terms and conditions of the APA, a detailed net working capital (NWC) calculation was developed in conjunction with the overall transaction purchase price. Post-closing, the parties could not agree to the NWC calculation. Per the APA, unresolved disputes must be settled through binding arbitration by a third-party accounting firm. J.S. Held represented the seller in this $5M post-closing dispute over the NWC calculation and the final purchase price.
Our team reviewed each party’s proposed and unresolved adjustments related to certain balance sheet accounts that comprised the $5M NWC dispute. We provided expertise in Generally Accepted Accounting Principles (GAAP) and its application to the balance sheet accounts in dispute. Specific arguments were developed to support our position based on the accounting principles outlined in the APA and the application of GAAP. Our team performed in-depth analyses of the accounting entries/transactions underlying the balance sheet accounts. We crafted a 49-page report (initial submission) and detailed exhibits that included net working capital calculations, purchase price calculations, and supporting documentation for the seller’s position that was submitted to the arbitrator. The buyer’s initial submission was reviewed, and a 48-page rebuttal report was drafted with exhibits to rebut the buyer’s positions. We also prepared detailed responses (34 pages) to the arbitrator’s initial questions.
The arbitrator ruled overwhelmingly in our favor, awarding our client 97.6% of the disputed amount. J.S. Held leveraged its expertise in M&A transactions, technical accounting, and post-closing purchase price disputes to achieve a successful outcome for our client.
Michael Jacoby, CTP
Strategic Advisory Practice Lead
+1 484 841 6808
[email protected]
Amy Yurish, CPA, CFF, CFE
Managing Director
Global Investigations Practice
+1 703 654 1453
[email protected]
Mark Karbiner
Senior Director
Strategic Advisory Practice
+1 610 389 5769
[email protected]
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