Technology
INDUSTRY
30
EMPLOYEES
$35M
ANNUAL REVENUE
$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
Inform the value of conveyed inventories.
Track order lifecycle through Salesforce.
Accumulate supporting documentation for potential litigation.
Prepare defensible position of subjective working capital values.
SOLUTIONS
Accumulated Salesforce order notes and details to support conclusions on forecast erosion.
Evaluated the pre-close valuation methodology for inventories.
Supported settlement negotiations.
Recovered
$1.6 Million
in cash proceeds
