Business case
A European industrial group acquired a manufacturer of specialised industrial components. Shortly after closing, systemic product-quality defects became apparent, resulting in recalls, warranty claims and reputational damage. The claimant alleged that the seller had failed to disclose material quality information during the transaction process, leading to an inflated purchase price.
The expert evidence made clear that the dispute was not limited to recall costs or warranty claims. It helped the Tribunal understand how technical defect evidence affected the price a reasonable buyer would have paid at acquisition, and how those defects should be reflected in valuation rather than treated only as direct remediation costs.
Our experts translated defect reports, undisclosed quality information and production-process evidence into a purchase-price damages analysis. Working from the technical expert’s view of the likely post-acquisition course of action, we quantified the financial impact using several valuation approaches, including DCF, Monte Carlo analysis and multiples.