Analyse de rentabilité
The claimant acquired a branch of a leading European international bank. After closing, it emerged that the seller had not disclosed critical information concerning non-performing loan portfolios and related provisions, which materially affected the value of the acquired business.
The analysis drew on Accuracy’s transaction-advisory and financial due diligence experience to explain the price effect of undisclosed banking risks. After direct and cross-examination, the Tribunal had a clear basis to assess whether the information available at signing had distorted the price paid and how the alleged overpayment should be measured.
We assessed whether the seller’s due diligence disclosures fairly reflected the quality of the loan book. We compared reported and actual non-performing exposures, provisions, profitability and capital adequacy, and quantified how undisclosed credit risks affected the value of the acquired business.