Business case
Our client, a major construction player primarily in EMEA and Asia, acquired an engineering company based in Germany as part of its growth strategy. After completing the transaction, the target company encountered liquidity problems and required additional capital. Concerns quickly arose regarding the accounting treatment of a major construction project and historically reported earnings.
Our work culminated in cross-examination by the counterparty’s legal team in an arbitration tribunal. It proved robust and withstood the challenges of the respondent’s lawyers.
We were engaged to investigate the acquired company’s financial position at the time of closing. We analysed various aspects of the accounting treatment in the financial accounts and identified additional potential claims, such as damages resulting from warranty violations. We also issued an expert opinion on the financial status at closing.