Context :

A manufacturing company wanted to acquire a foreign company to strengthen its presence in a new market. The target’s contracts included complex clauses related to liability guarantees and performance obligations, with the potential for costly litigation.

Approach :

We conducted a thorough contractual audit, analyzing acquisition agreements, customer and supplier contracts, and regulatory commitments. A financial risk assessment was conducted, and recommendations were made to renegotiate certain clauses. We also supported negotiations to clarify post-acquisition responsibilities.

Results :

The audit identified potential liabilities valued at €3.5 million, thus avoiding significant losses. The renegotiated clauses reduced risks by 30%, and the transaction was successfully completed, increasing the acquired company’s valuation by 10% thanks to better contractual structuring.