Valuation dispute related to the sale of a subsidiary

Valuation dispute related to the sale of a subsidiary

Mark E. Zmijewski
Forensic Accounting & Investigation | Damages & Valuation

An aerospace, automotive, and engineering company (defendant) turned to CRA’s expert during litigation related to the sale of a subsidiary. CRA’s expert opined on the value of the subsidiary as of the time of the acquisition, showing that the price paid by the plaintiff was within the appropriate valuation range using the plaintiff’s financial advisor’s own methodology. CRA’s expert also conducted a solvency analysis of the plaintiff and demonstrated that the plaintiff was solvent at the close of the transaction with the defendant. CRA’s client prevailed when the plaintiff withdrew the solvency claim after CRA’s expert’s deposition.