{"id":44227,"date":"2017-08-01T04:08:36","date_gmt":"2017-08-01T02:08:36","guid":{"rendered":"https:\/\/newserver.fyb.de\/produkt\/evidence-and-calculation-of-damages-in-business-purchase-agreements\/"},"modified":"2017-08-01T04:08:36","modified_gmt":"2017-08-01T02:08:36","slug":"evidence-and-damage-calculation-in-company-sales-contracts","status":"publish","type":"product","link":"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/","title":{"rendered":"Evidence and calculation of damages in business purchase agreements"},"content":{"rendered":"

Dr. Alice Broich\u00admann<\/strong> \u2014 Coun\u00adsel P+P P\u00f6llath + Part\u00adners, Munich<\/p>\n

Kai Schu\u00adma\u00adcher<\/strong> \u2014 Senior Direc\u00adtor Alva\u00adrez & Marsal, Munich<\/p>\n","protected":false},"excerpt":{"rendered":"

Nobody really wants dispu\u00adtes in connec\u00adtion with corpo\u00adrate tran\u00adsac\u00adtions (mergers & acqui\u00adsi\u00adti\u00adons). Due to the high purchase prices, howe\u00adver, dispu\u00adtes ranging from post-contrac\u00adtual discus\u00adsions and renego\u00adtia\u00adti\u00adons to liti\u00adga\u00adtion before a court or arbi\u00adtra\u00adtion tribu\u00adnal occur more frequently than expected.<\/strong><\/p>\n

Ten percent of all M&A tran\u00adsac\u00adtions lead to conten\u00adtious situa\u00adtions after the fact<\/strong><\/p>\n

Recent rese\u00adarch shows that about ten percent of all tran\u00adsac\u00adtions lead to renego\u00adtia\u00adtion or become conten\u00adtious in one form or another. Around two-thirds of the parti\u00adci\u00adpants in a study on M&A dispu\u00adtes even expect an increase in dispu\u00adtes and renego\u00adtia\u00adti\u00adons in the future. The back\u00adground to this is that the current econo\u00admic condi\u00adti\u00adons and compli\u00adance regu\u00adla\u00adti\u00adons leave many market parti\u00adci\u00adpants with no choice but to forego a purchase price (reco\u00advery) that is usually worth seve\u00adral million euros.<\/p>\n

Accor\u00adding to a long-term empi\u00adri\u00adcal value, the average purchase price reduc\u00adtion is in the order of 5\u201310%. In prac\u00adtice, howe\u00adver, purchase price adjus\u00adt\u00adments of 50% and more do occur. As a result, the issue of post\u2011M&A dispu\u00adtes is incre\u00adasingly beco\u00adming the focus of compa\u00adnies, private equity funds, and legal and finan\u00adcial advi\u00adsors. Even if dispu\u00adtes in the context of M&A tran\u00adsac\u00adtions can be redu\u00adced, for exam\u00adple, through inten\u00adsive due dili\u00adgence and excel\u00adlent legal advice during the nego\u00adtia\u00adtion of the purchase agree\u00adment, they cannot be preven\u00adted. \u2014 What can be done to avoid a dispute or if it does come to that?<\/p>\n

Evidence in M&A disputes<\/strong><\/p>\n

Whether a plain\u00adtiff prevails in a legal dispute depends to a large extent on whether he or she can present and prove the facts on which the claim is based. Espe\u00adci\u00adally in complex M&A dispu\u00adtes, litig\u00adants often unde\u00adre\u00adsti\u00admate the diffi\u00adcul\u00adties asso\u00adcia\u00adted with provi\u00adding evidence. If the legal dispute, which has been conduc\u00adted with the use of large person\u00adnel and finan\u00adcial resour\u00adces, is lost after a leng\u00adthy proce\u00addure only because the (arbi\u00adtra\u00adtion) court does not consider the rele\u00advant facts to be proven, the disap\u00adpoint\u00adment is great.<\/p>\n","protected":false},"featured_media":41453,"comment_status":"open","ping_status":"closed","template":"","meta":{"wp_typography_post_enhancements_disabled":false},"product_brand":[],"product_cat":[2452,2602,2614,2615],"product_tag":[1471,1900,2376,2386,2397,2403,2411,2414],"class_list":{"0":"post-44227","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-ebook-en","7":"product_cat-fyb-2014-en","8":"product_cat-dr-alice-broichmann-en","9":"product_cat-kai-schumann-en","10":"product_tag-corporate-transactions","11":"product_tag-company-purchase-agreement","12":"product_tag-broichmann-en","13":"product_tag-alice-en","14":"product_tag-schumacher-en","15":"product_tag-kai-en","16":"product_tag-mergers-acquisitions-en","17":"product_tag-ma-disputes","18":"pa_sprache-english-3","19":"pa_sprache-german","21":"first","22":"outofstock","23":"taxable","24":"shipping-taxable","25":"purchasable","26":"product-type-variable"},"yoast_head":"\nEvidence and calculation of damages in business purchase agreements - FYB Financial Yearbook<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Evidence and calculation of damages in business purchase agreements - FYB Financial Yearbook\" \/>\n<meta property=\"og:description\" content=\"Nobody really wants disputes in connection with corporate transactions (mergers & acquisitions). Due to the high purchase prices, however, disputes ranging from post-contractual discussions and renegotiations to litigation before a court or arbitration tribunal occur more frequently than expected. Ten percent of all M&A transactions lead to contentious situations after the fact Recent research shows that about ten percent of all transactions lead to renegotiation or become contentious in one form or another. Around two-thirds of the participants in a study on M&A disputes even expect an increase in disputes and renegotiations in the future. The background to this is that the current economic conditions and compliance regulations leave many market participants with no choice but to forego a purchase price (recovery) that is usually worth several million euros. According to a long-term empirical value, the average purchase price reduction is in the order of 5-10%. In practice, however, purchase price adjustments of 50% and more do occur. As a result, the issue of post-M&A disputes is increasingly becoming the focus of companies, private equity funds, and legal and financial advisors. Even if disputes in the context of M&A transactions can be reduced, for example, through intensive due diligence and excellent legal advice during the negotiation of the purchase agreement, they cannot be prevented. - What can be done to avoid a dispute or if it does come to that? Evidence in M&A disputes Whether a plaintiff prevails in a legal dispute depends to a large extent on whether he or she can present and prove the facts on which the claim is based. Especially in complex M&A disputes, litigants often underestimate the difficulties associated with providing evidence. If the legal dispute, which has been conducted with the use of large personnel and financial resources, is lost after a lengthy procedure only because the (arbitration) court does not consider the relevant facts to be proven, the disappointment is great.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/\" \/>\n<meta property=\"og:site_name\" content=\"FYB Financial Yearbook\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Broichmann.png\" \/>\n\t<meta property=\"og:image:width\" content=\"334\" \/>\n\t<meta property=\"og:image:height\" content=\"298\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/\",\"url\":\"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/\",\"name\":\"Evidence and calculation of damages in business purchase agreements - FYB Financial Yearbook\",\"isPartOf\":{\"@id\":\"https:\/\/www.fyb.de\/en\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Broichmann.png\",\"datePublished\":\"2017-08-01T02:08:36+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/#primaryimage\",\"url\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Broichmann.png\",\"contentUrl\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Broichmann.png\",\"width\":334,\"height\":298},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.fyb.de\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"FYB Shop\",\"item\":\"https:\/\/www.fyb.de\/en\/shop\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Evidence and calculation of damages in business purchase agreements\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.fyb.de\/en\/#website\",\"url\":\"https:\/\/www.fyb.de\/en\/\",\"name\":\"FYB Financial Yearbook\",\"description\":\"For Your Business\",\"publisher\":{\"@id\":\"https:\/\/www.fyb.de\/en\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.fyb.de\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.fyb.de\/en\/#organization\",\"name\":\"FYB Financial Yearbook\",\"url\":\"https:\/\/www.fyb.de\/en\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg\",\"contentUrl\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg\",\"caption\":\"FYB Financial Yearbook\"},\"image\":{\"@id\":\"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Evidence and calculation of damages in business purchase agreements - FYB Financial Yearbook","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/","og_locale":"en_US","og_type":"article","og_title":"Evidence and calculation of damages in business purchase agreements - FYB Financial Yearbook","og_description":"Nobody really wants disputes in connection with corporate transactions (mergers & acquisitions). Due to the high purchase prices, however, disputes ranging from post-contractual discussions and renegotiations to litigation before a court or arbitration tribunal occur more frequently than expected. Ten percent of all M&A transactions lead to contentious situations after the fact Recent research shows that about ten percent of all transactions lead to renegotiation or become contentious in one form or another. Around two-thirds of the participants in a study on M&A disputes even expect an increase in disputes and renegotiations in the future. The background to this is that the current economic conditions and compliance regulations leave many market participants with no choice but to forego a purchase price (recovery) that is usually worth several million euros. According to a long-term empirical value, the average purchase price reduction is in the order of 5-10%. In practice, however, purchase price adjustments of 50% and more do occur. As a result, the issue of post-M&A disputes is increasingly becoming the focus of companies, private equity funds, and legal and financial advisors. Even if disputes in the context of M&A transactions can be reduced, for example, through intensive due diligence and excellent legal advice during the negotiation of the purchase agreement, they cannot be prevented. - What can be done to avoid a dispute or if it does come to that? Evidence in M&A disputes Whether a plaintiff prevails in a legal dispute depends to a large extent on whether he or she can present and prove the facts on which the claim is based. Especially in complex M&A disputes, litigants often underestimate the difficulties associated with providing evidence. If the legal dispute, which has been conducted with the use of large personnel and financial resources, is lost after a lengthy procedure only because the (arbitration) court does not consider the relevant facts to be proven, the disappointment is great.","og_url":"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/","og_site_name":"FYB Financial Yearbook","og_image":[{"width":334,"height":298,"url":"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Broichmann.png","type":"image\/png"}],"twitter_card":"summary_large_image","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/","url":"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/","name":"Evidence and calculation of damages in business purchase agreements - FYB Financial Yearbook","isPartOf":{"@id":"https:\/\/www.fyb.de\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/#primaryimage"},"image":{"@id":"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/#primaryimage"},"thumbnailUrl":"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Broichmann.png","datePublished":"2017-08-01T02:08:36+00:00","breadcrumb":{"@id":"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/#primaryimage","url":"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Broichmann.png","contentUrl":"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/07\/Broichmann.png","width":334,"height":298},{"@type":"BreadcrumbList","@id":"https:\/\/www.fyb.de\/en\/produkt\/evidence-and-damage-calculation-in-company-sales-contracts\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.fyb.de\/en\/"},{"@type":"ListItem","position":2,"name":"FYB Shop","item":"https:\/\/www.fyb.de\/en\/shop\/"},{"@type":"ListItem","position":3,"name":"Evidence and calculation of damages in business purchase agreements"}]},{"@type":"WebSite","@id":"https:\/\/www.fyb.de\/en\/#website","url":"https:\/\/www.fyb.de\/en\/","name":"FYB Financial Yearbook","description":"For Your Business","publisher":{"@id":"https:\/\/www.fyb.de\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.fyb.de\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.fyb.de\/en\/#organization","name":"FYB Financial Yearbook","url":"https:\/\/www.fyb.de\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/","url":"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg","contentUrl":"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg","caption":"FYB Financial Yearbook"},"image":{"@id":"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product\/44227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product"}],"about":[{"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/types\/product"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/comments?post=44227"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/media\/41453"}],"wp:attachment":[{"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/media?parent=44227"}],"wp:term":[{"taxonomy":"product_brand","embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product_brand?post=44227"},{"taxonomy":"product_cat","embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product_cat?post=44227"},{"taxonomy":"product_tag","embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product_tag?post=44227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}