Problem statement and legal background
The seller in an M&A transaction was entitled to a portion of the purchase price, which would be paid later, based on the operating results after the sale under an earn-out clause. The buyer declined this payment because the operating results were poor. However, the seller stated that the buyer had reorganized the company in such a way, so it was not surprising that a bad result had been achieved. There was an ongoing conflict about the interpretation of the earn-out clause and the effect of the reorganization on business results.
Solution
Patroon was called in to support the seller in the court proceedings. We developed a series of visual presentations, infographics, and diagrams to explain the buyer's reorganization of the company and its impact on business results and the earn-out clause.
Results
The use of litigation visuals had the following effects:
- Effective communication: The litigation visuals helped to effectively communicate the consequences of the reorganization on business results and the earn-out clause.
- Time savings: Lawyers spent less time explaining the relevant clauses at the hearing, allowing them to focus on other aspects of the case.
- Better understanding: The judge understood the complex M&A documentation better, which contributed to a successful outcome in the proceedings.
Conclusion
This case shows that the use of litigation visuals in complex cases can play a crucial role in achieving a positive outcome for clients. Using clear and convincing images to clarify legal concepts can make a significant difference in the success of legal proceedings and customer satisfaction.
