$1.6M Working Capital Dispute

VIP SOLUTIONS CASE STUDY

BACKGROUND

Inventory conveyed to our client in an acquisition was approximately $2M under the purchase agreement’s working capital threshold, on a US GAAP basis. These inventories were purchased by the predecessor for customizations on orders that eroded and fell through. 

OBJECTIVES

VIP Solutions Case Study

Inform the value of conveyed inventories.

VIP Solutions Case Study

Track order lifecycle through Salesforce.

VIP Solutions Case Study

Accumulate supporting documentation for potential litigation.

VIP Solutions Case Study

Prepare defensible position of subjective working capital values.

SOLUTIONS

VIP Solutions Case Study

Accumulated Salesforce order notes and details to support conclusions on forecast erosion.

VIP Solutions Case Study

Evaluated the pre-close valuation methodology for inventories.

VIP Solutions Case Study

Supported settlement negotiations.

Recovered
$1.6 Million
in cash proceeds