Definitive Proof of Loss Provided; Jury Awards $55 Million in Post-Acquisition Legal Dispute
Client: Regional Scrap Recycling Company
Challenge: Provide Definitive Proof of Loss by Valuing Business Enterprise with Different Sets of Assumptions
One of the nation's largest regional scrap recyclers became embroiled in a lawsuit after discovering a huge discrepancy in the quantity of inventory that was supposed to have been part of a recent acquisition. Prior to the acquisition, the inventory was inspected, and the quantities were verified by one of the world's largest auditing firms. The scrap recycler initiated the lawsuit to recover damages.
AccuVal Approach
AccuVal was engaged to prepare contrasting valuations of the business enterprise one assuming the enterprise benefited from the quantity of inventory represented by an international auditing firm and one with actual quantities on-hand. The appraisals considered the conclusions rendered by a number of experts engaged to value various assets of the company. AccuVal played the lead role, supplying both litigation support and expert witness testimony in a matter scheduled to be heard by judge and jury.
Valuation theory and techniques are foreign to most people outside the industry. To be successful in court, AccuVal transformed very complex valuation concepts into language and logic everyone could understand.
Bottom Line: $55 Million Judgment in Favor of AccuVal's Client
AccuVal presented compelling evidence clearly and concisely to enable people to arrive at the right conclusion. As a result, the jury awarded AccuVal's client a $55 million judgment. The matter is being appealed.
The AccuVal AdVantage™
Communicating complex concepts simply. Presenting complex data and conclusions logically. Intimate knowledge of valuing businesses and all underlying assets. Tenacity. This is The AccuVal AdVantage™ at work.
© 2013 AccuVal Associates, Inc. All Rights Reserved