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VALUATION DISPUTES

Whether in the context of a shareholder dispute, bankruptcy-related litigation, or other disputes, parties to complex commercial litigation often encounter questions regarding the value of a business, business interest, or assets.  BVA’s valuation professionals have industry-leading expertise and a proven track record of helping our clients navigate complex valuation issues, particularly in situations involving litigation or disputes that have the potential to result in litigation. 

Many of our valuation professionals also regularly serve as testifying experts and, thus, maintain a unique perspective that enables us to provide valuable insight and guidance in connection with litigation.  Our experts have significant experience in numerous types of valuation disputes, including: 

  • Partner/shareholder disputes 
  • Purchase price disputes 
  • Analyses of solvency in bankruptcy 
  • Minority shareholder oppression 
  • Post-M&A disputes 
  • Distribution of estate and trust assets 
  • Triggered buy/sell agreements 
  • Loss of business value claims 
  • Statutory mergers and appraisal rights valuations 
  • Marital dissolutions 
The Situation: A post-acquisition purchase price dispute arose between two companies over a transaction valued at over $100 billion.  The parties retained an arbitration panel to review evidence and evaluate claimed adjustments.

The Action: BVA was initially engaged as a “shadow arbitrator” to develop estimates of the arbitration panel’s conclusions based on the evidence as discovery took place.  BVA then proceeded to help counsel to formulate valuation/accounting arguments and presentation strategy.

The Situation: Tronox alleged that Kerr-McGee effected numerous fraudulent transfers of E&P businesses over a period of years leading up to the IPO/spin-off of its chemical business and that upon separation, the chemical business retained significant legacy liabilities, rendering it insolvent.

The Action: On behalf of Anadarko, developed expert analysis regarding economic damages and various financial issues.  Valued various Tronox entities and rebutted opposing expert’s valuation of Kerr-McGee E&P assets, onshore and offshore, worldwide.  Provided ongoing consulting during all phases of the lawsuit (deposition, trial, post-trial).

The Situation: Bank alleged that (1) Verizon’s Board withheld material information from the market, causing $14 billion market valuation of Idearc to be substantially overstated, (2) had the market been aware, market value would have been much less, and (3) that Idearc was insolvent.

The Action: On behalf of defendants, rebutted opposing expert and concluded Idearc was solvent and capital structure was suitable.

The Situation: Plaintiffs alleged that they had been granted compensatory options to receive a percentage of the growth in the company’s equity value realized over time.  After the company denied the existence of the option, Plaintiffs asserted claims for lost value.

The Action: Developed expert analyses and reports assessing the value of over 60 legal entities owned directly and indirectly by the subject company through a complex corporate structure, which in turn informed the value of the alleged options. Provided significant consulting support in connection with various issues.