Working Capital Dispute
VIP SOLUTIONS CASE STUDY
Media & Technology
INDUSTRY
800
EMPLOYEES
$300M
ANNUAL REVENUE
BACKGROUND
Working capital conveyed to our client in an acquisition was approximately $70M under the purchase agreement’s working capital threshold.
OBJECTIVES
Inform the value of conveyed working capital in a carve-out acquisition.
Accumulate supporting documentation for potential litigation.
Prepare defensible position of subjective working capital values, including accruals, reserves and estimates.
SOLUTIONS
Accumulated opening balance sheet working capital balances on an asset-by-asset basis.
Established process to track the consumption & forecasted consumption of conveyed inventories.
Responded to mediator's requests in settlement discussions.
Recovered
$43.2 Million
in cash proceeds
