Mike Pilgrem

Mike Pilgrem

Mike Pilgrem

Senior Managing Director

Tel: +44 (0) 20 3727 1422
Fax: +44 (0) 20 3727 1007
Email: mike.pilgrem@fticonsulting.com

Mike Pilgrem is a Senior Managing Director at in FTI Consulting, based on London. He works within the Economic Consulting practice. Over the last 25 years, his responsibility has included audit, financial consulting and business valuation for a range of UK and international clients in different industries. Mr. Pilgrem has provided advice about the value of companies and their intellectual property or other intangible assets in a variety of contexts – for sale or purchase, for fiscal purposes, for financial statement disclosure, and in disputes. He has 20 years of experience in providing advice in the context of disputes, including minority shareholder actions, post-acquisition disputes, expert determinations, loss of profit claims, matrimonial matters and professional negligence claims.

Experience

Mr. Pilgrem joined the firm in March 2011, following its transaction with LECG, where he was a director in its European financial advisory services practice. Mr. Pilgrem joined LECG in 2006. Prior to this Mike was a senior manager in Arthur Andersen’s economic and financial consulting group and then a director in the valuation group of Deloitte’s corporate finance practice.

Mr. Pilgrem has been appointed as expert witness and prepared reports in matters before arbitral tribunals and the UK’s High Court and given oral testimony as an expert witness before the UK's High Court and arbitral tribunals under the rules of the International Chamber of Commerce, UNCITRAL or the London Court of International Arbitration. During the course of his career, including as project manager, he has been responsible in over 55 cases for one or more expert reports produced in matters before UK or international tribunals or for written submissions to, or determinations by, experts; including some of the largest commercial claims seen in the UK.

Mr. Pilgrem graduated with an MA in Natural Sciences from the University of Cambridge and is a chartered accountant.

Previous Positions

LECG Limited (2006 to March 2011) (Principal (2006 and 2007), Director (2008 to 2011)

Deloitte & Touche LLP, Corporate Finance practice, Valuation group (2002 to 2005) (Director)

Arthur Andersen (1988 to 2002):

Economic and Financial Consulting; Strategy, Finance and Economics; Economics & Value Solutions; and Financial Consulting Services groups (1993 to 2002) in the Assurance and Business Advisory (1993 to 1997 and 2000 to 2002) and Business Consulting (1997 to 2000) practices (Senior Manager in Valuation Services and Dispute Consulting teams (1998 to 2002); Manager (1993 to 1998)

Assurance and Business Advisory practice (1988 to 1993) (Experienced Senior (1991 to 1993), Senior (1990 to 1991), Experienced Assistant (1989 to 1990), Trainee Chartered Accountant (1988 to 1989)

Professional Experience

Claims and disputes – Valuation or financial advice

Commercial exploitation of motor sports worldwide, litigation before the UK’s High Court, Chancery Division: Mike was instructed on behalf of the first defendant, Bernie Ecclestone, as expert witness on questions of value in a claim brought against Mr Ecclestone and three other defendants. The subject matter of Mike’s advice was an indirect interest in the group of companies granted commercial rights associated with the FIA Formula One World Championship. The valuation date was in 2005, when Bayerische Landesbank approved the sale of the interest to CVC Capital Partners. Mike prepared a written report and a joint statement (with two other experts instructed on behalf of other parties), and was cross-examined at trial. The judgment of the court is published as Constantin Medien v Bernard Ecclestone and others [2014] EWHC 387 (Ch).

Viaticals, USA, litigation before the High Court of Justice of the Isle of Man, Chancery Division: Mike was instructed on behalf of a defendant as an expert witness on questions of accountancy and valuation in connection with the plaintiffs’ schedule of loss and damage. The plaintiffs were vehicles through which viatical settlements (traded life policies) could be purchased and sold to investors and claimed that their business had not been conducted in accordance with certain standards and duties owed to the plaintiffs had been breached. Mike advised on the expert issues arising in the case. The matter settled before service of expert reports on loss and damage.

Primary medical care services, UK, expert determination of value: Mike was instructed to provide independent valuation advice to the owner of a limited liability partnership providing primary medical care services through a number of practices in Northern England. He prepared two written submissions to an independent expert appointed to determine the value of the LLP, in order to resolve a dispute between the member and former member of the LLP. Mike also advised on the process for expert determinations of value.

Container ports, Turkey, arbitration under the rules of the International Court of Arbitration of the International Chamber of Commerce: Mike was instructed on behalf of the respondents as expert witness, prepared three expert reports and a joint statement, and testified, on the damages suffered by the claimant as a consequence of the alleged wrongful loss of an indirect interest in a partially completed project to construct, equip, own and operate a partially completed greenfield container port on the Sea of Marmara.

Mobile virtual network operator (MVNO), UK, litigation before the Technology and Construction Court: Mike was instructed on behalf of the defendant as expert witness, and prepared two expert reports, on the solvency of the claimant and another member of the claimant’s group, and their ability to meet liabilities should a court determine that they are liable to pay damages or costs. The judgment of the court is published as Eagle Ltd v Falcon Ltd [2012] EWHC 2261 (TCC). Mike was also instructed on the quantification of the damages alleged by the claimant. The matter settled before the service of expert reports on damages.

Gas pipeline construction, West Africa, litigation before the UK’s Technology and Construction Court: Mike was instructed on behalf of the claimant as expert witness in the field of forensic accountancy and prepared a joint statement including a list of expert issues. The issues included whether, and why, costs had been incurred; the reliability of accounting records; and matters related to possible mitigation of loss. Mike also assessed interest as damages based on the terms of certain debt and equity financing arrangements and capital requirements. The project involved working closely with experts in the field of quantity surveying. The matter settled following the service of the joint statement.

Manufacture and sale of trains, Europe, litigation before the UK’s High Court, Chancery Division: Mike and another expert were jointly instructed on behalf of the claimant to provide advice on the measure of damages and the quantification of lost profits from the manufacture and sale of trains. The matter settled before the service of expert reports.

Mobile telecommunications, Eurasia, possible arbitration: Mike was instructed on behalf of the claimant to assess the adverse effect on the value of an interest in a mobile telecommunications operator, and other financial damage, of the implementation of certain operational decisions.

Patent over domestic appliance technology, France, litigation before the Tribunal de Grande Instance de Paris: Mike was instructed on behalf of the claimant as an economic and financial consultant to consider the information required from the defendants to perform an inquiry as to damages from the infringement of a patent, and to assess the information provided. The matter settled after preparation and service on the defendants of a schedule of information and supporting accounting evidence required.

Financial damage, France, litigation before the Cour d’Appel de Paris: Mike was instructed on behalf of the claimants as expert witness and prepared an expert report on the weighted average cost of capital of a claimant’s group for the purposes of assessing financial damage arising from past lost manufacturing profits.

Consumer electronics, UK, litigation before the Commercial Court: Mike was instructed on behalf of the claimants as expert witness, and prepared calculations annexed to statements of claim, on damages suffered by the claimant as the consequence of alleged breach of warranty as to quality by the original equipment manufacturer on the supply of televisual consumer electronics products. The products were alleged to result in a higher than specified failure rate over the life time of the products. The matter settled before the service of expert reports.

Resort hotels, Egypt, arbitration under the rules of the International Court of Arbitration of the International Chamber of Commerce: Mike was instructed on behalf of the claimant as expert witness, prepared three expert reports, and gave oral testimony to the tribunal, on the damages suffered by a branded international hotel operator as a result of the wrong termination of a hotel management agreement. The project involved assessing expectations of future outcomes at the time of the Egyptian protests in early 2011.

Gas turbine power plant, UK, litigation before the High Court, Technology and Construction Court: The defendants sought independent advice on the quantification of the claimants’ alleged loss and damage from alleged breach of warranty as to the state of the generating equipment and the validity of an associated insurance policy in a post-acquisition dispute. Mike was identified in the report to the court as having led the team supporting the testifying expert. The matter settled on the date for service of the expert report.

Offshore oil and gas production, North Africa, arbitration under the rules of the International Court of Arbitration of the International Chamber of Commerce: Mike, together with another expert, was jointly instructed on behalf of the claimants as expert witness and prepared expert reports on the operation of an accounting mechanism under a concession agreement for petroleum exploration and exploitation. The project involved identifying and explaining to the Tribunal the complex mechanism set out in the contractual documents and investigating how it had in fact been operated by reference to the accounting vouchers and records of the claimants, the contractor and operator under the concession. The matter settled following the service of a report.

Interest on damages, UK, litigation before the Technology and Construction Court: Mike was instructed on behalf of the claimants as expert witness and prepared an expert report on interest on past losses suffered over a six-year period, which included the financial crisis of 2007 to 2009. The project involved understanding the approach taken by courts in previous UK litigation, the circumstances of the claimants, the group of companies of which they were a part and other entities in the same industry and their credit ratings, the relationship between interest on damages and the incidence of taxation on damages, and the principles and practices of borrowing by issuing corporate bonds. The matter settled following the service of Mike’s report.

Offshore oil exploration and production, Kenya, litigation before the UK’s Commercial Court: Mike was instructed as expert witness and prepared three expert reports on the value of the expected cash flows from a project to explore for oil offshore Kenya. The engagement involved quantifying revenues and costs under the terms of a production sharing contract, based in part on the opinions of experts in a number of other disciplines, including geology, geochemistry, reservoir engineering, drilling engineering, development engineering, facilities engineering and forecasting the future price of crude oil. It also involved considering the use in scenario analysis of discrete approximations of probability distributions of recoverable oil volumes, and identifying and applying an appropriate framework for assessing the impact of country specific risks, including political risks, on the project. The matter settled following the service of Mike’s reports.

Pharmaceuticals, transfer pricing, UK, referral to UK’s First Tier Tribunal (Tax): HM Revenue & Customs (HMRC) in the UK sought independent advice on questions about transfer pricing in accordance with UK statutes and the OECD’s Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, principles of corporate finance and project appraisal applicable in the relevant industry, accountancy and the preparation of transfer pricing reports. Mike was identified in reports to the UK's First Tier Tribunal (Tax) as having led the team supporting the testifying expert. The project involved working with specialists in the structure and terms of uncontrolled transactions in the industry, also instructed on behalf of HMRC. The matter settled with the taxpayer agreeing to pay a significant sum to resolve all claims made by HMRC in relation to the issue and, as a result, a joint referral to the tribunal in respect of pricing between the taxpayer's UK operations and one of its overseas operations for the years from the late-1990s was withdrawn.

Inter dealer broking, freight derivatives, UK, litigation before the High Court, Queen’s Bench Division: Expert advice was provided to the defendant about the claimant’s claims for lost past and future profits and the loss of value of continuing goodwill, in the context of a breach of a contract of employment. The project included researching developments in the markets in question.

Mobile telecommunications, lignite-fired power stations, real estate and other investments, Poland, litigation before the UK’s High Court, Chancery Division: Expert advice was provided about the meaning of accounting terms, particularly as used in international accounting and financial reporting standards, and valuation terms and the fair market value of controlling and non-controlling interests in a number of companies held directly or indirectly by a Polish holding company in the context of a dispute about the operation of a contingent payment clause in the trust deed of bonds guaranteed by the company. Mike was the director on the project, with responsibility for the production of expert reports and the co-ordination of the work of other experts in Poland and London. The project involved working with specialist valuers of Polish real estate and meetings of experts conducted through video conferencing and an interpreter.

Heavy industry joint venture, UK, possible litigation: Advice was provided to a potential claimant about the measure of its damages for a claim for the tort of deceit and for claims for breaches of warranty in a post-acquisition dispute, where the acquisition had involved the establishment of a joint venture with a complex legal structure. The project involved interpreting a number of related agreements, understanding UK and international standards for the financial accounting for long-term or construction contracts and evaluating the financial accounting of a number of undertakings. The matter settled before the issue of a claim form.

Media planning and buying, Italy, litigation before the UK’s Commercial Court: Expert advice was provided about the value of the whole of the issued share capital of a company involved in media planning and buying in Italy, and the potential effect on value of an individual’s alleged involvement with the company. Mike was the director on the project, with responsibility for the production of expert reports. The matter settled following the service of the reports.

CRM system for call centre, UK, litigation before the Technology and Construction Court: The claimants sought independent advice on questions of accountancy and the quantification of the claimants’ loss and damage. Mike was identified in the reports to the court as having led the team supporting the testifying expert. The claimants made alternative claims for pre-contractual deceit, negligent misrepresentation or negligent misstatement; for breach of contract; or for breach of warranties related to the defendant's role as systems integrator in respect of a project to develop a customer relationship management (CRM) system. The engagement involved quantifying the claimants’ cost-based damages and the claimants’ lost benefit claims, based on the opinions of IT experts, experts in the churn-related benefits from CRM systems and experts in the effect of CRM systems on the operation of call centres.

Portfolio of emerging market investments, litigation before the UK’s Commercial Court: Mike provided expert advice about the hypothetical value at various dates of a substantial portfolio of emerging market investments based on assumptions about alternative rates of return applied to daily cash flows over a period of many years, for the purposes of the quantification of damages set out in detail in statements of case. The court did not seek expert evidence on the calculations that had been performed. Given the court’s decision on issues of liability, its judgment did not discuss issues of quantification of loss.

Manufacturer of industrial products, Europe, arbitration under the rules of the Arbitration Institute of the Stockholm Chamber of Commerce: Mike was instructed as an expert witness and prepared two expert reports on the value of the business of a global manufacturer of industrial products, headquartered in Europe, in the context of the assessment of damages in a post-acquisition dispute between the vendor and the purchaser. The project involved considering the relationship between accounting information, which was the subject of certain warranties, and the value of the business in the context of a complex sale and purchase agreement. The matter settled following the service of Mike's reports.

Property development joint venture, UK, litigation before the High Court, Chancery Division: Mike was instructed by the English solicitors of parties to a significant property development joint venture to review and comment on the contractual entitlements and obligations of the parties under a complex set of inter-related contractual arrangements related to the development, which involved arrangements involved accounting processes and terms of art. The matter settled before expert evidence was served.

Casino gambling, UK, expert witness in matrimonial matter before the High Court, Family Division: Mike was instructed as expert witness by the English solicitors of a wife in divorce and ancillary relief proceedings. Mike analysed casino and bank statements recording the casino gambling activities and other payments of the husband, and prepared a report to the court. The matter settled following the service of Mike’s report.

Fund manager, UK, expert determination of value: Provided advice to an owner-manager about the interpretation of an expert valuation clause in the articles of association of a UK company providing investment advice to an offshore fund and pension funds and expert valuation advice was provided about the whole of the issued share capital of the company. Submissions on behalf of the shareholder were made to the valuer appointed under the articles. Mike was the director on the project, with responsibility for the production of the first and reply submissions.

Bank, Central Europe, arbitration under UNCITRAL rules where the appointing authority was the London Court of International Arbitration: Expert advice was provided about the value of various interests in the issued share capital of the bank in the context of a contractual dispute. Mike was the director on the project, with responsibility for the production of the expert report.

Oil company, Africa, duties of a mortgagee in possession: Valuation advice was provided to the holders of the shares of an African upstream oil company, in the context of the duties of the shareholder as a mortgagee in possession. The project involved working closely with specialist upstream oil asset valuers. Mike was the director on the project, responsible for the company valuation issues.

Hotel group, UK, petition under section 459 of the Companies Act 1985: Provided expert advice to the petitioners about the fair value of a minority interest in a UK hotel group, in the context of a petition for a buy out order to relieve alleged unfair prejudice. The project involved working with specialist hotel asset valuers. Mike was the director on the project, responsible for the production of a report used to support a mediation process. The dispute settled on mediation.

Telecommunications company, Africa, international arbitration: Provided expert advice about the fair market value of a minority interest in a telecommunications company in a developing African country under different scenarios. The project involved working closely with specialist economists. Mike was the director on the project, responsible for the production of an expert report.

Optician, UK, commercial dispute pre-expert determination/litigation: Advice was provided about the value of one of two classes of shares in a company owning an optician branch, in the context of a dispute between a former manager and the owner of the brand under which branch trades. Mike performed an independent review of a report prepared by a firm of accountants in the Channel Islands.

Luxury hotel, Europe, determination of value under sale and purchase agreement: Expert advice was provided about the value of an indirect interest in a European luxury hotel, jointly-owned through a complex legal structure, in the context of the terms of a sale and purchase agreement relating to the determination of purchase consideration. The project involved working closely with specialist hotel valuers. Mike was the director on the project.

Luxury hotel resort, Portugal, litigation before the Royal Court of Jersey: Expert advice was provided about the value of a minority interest in a company that owns a luxury hotel resort in Portugal and the value of a minority interest in another company that owns a substantial interest in that company. The project involved working closely with specialist hotel valuers. Mike was a director on the project, with responsibilities for the production of an expert report.

Debt securities, Europe, expert determination of value: Mike was the director responsible for the determination of the value of certain debt securities under the terms of a contractual arrangement.

Provider of public relations services, UK, matrimonial matter before the High Court: Expert advice was provided about the value of a controlling interest in a partnership offering public relations services. Mike was the manager on the project, responsible for the production of an expert report.

Manufacturer and retailer of men’s suits, Russia, litigation before the UK’s High Court: Expert advice was provided about the value of a minority interest in a Russian company in the context of assessing damages in a dispute about a failed investment. Mike was the director on the project.

Patent over measurement technology, UK, France and Germany, inquiries as to damages following infringement of patent rights: Expert advice was provided involving the consideration of lost manufacturing profits and a reasonable royalty. Mike was the director on the project, with responsibilities for the production of expert reports.

Provider of direct marketing services, UK, litigation before the High Court: Expert valuation advice was provided to the acquirer of a company providing direct marketing and document control and fulfilment services, in connection with a post-acquisition dispute. Mike was the manager on the project, responsible for the production of an expert report.

Major fruit producer and transporter, South America, litigation before the UK’s High Court: Expert valuation advice was provided to a minority shareholder in a privately-held major fruit producer and transporter, in connection with a post-acquisition dispute. Mike was the manager on the project, responsible for the production of an expert report and a joint statement between the parties’ valuation experts.

Distributor of consumer electronics, India, expert witness before an arbitral tribunal under the London Court of International Arbitration rules: The relationship between a leading distributor of consumer electronics in India and its supplier broke down. The relationship was the subject of a long-term contract. Mike prepared expert reports and gave testimony as an expert witness, considering issues related to the end of the relationship and the financial impact of the termination of the relationship, for the purposes of damages.

Privately-held family of companies, Middle East, expert determination of inventory and value: A leading family in a Middle Eastern country was performing a major, 12 month-long exercise to prepare an inventory of its wealth and to value each of the family’s assets — comprising of businesses in the country and overseas, commercial and residential real estate, and portfolios of unlisted and listed investments — for the purposes of dividing its wealth between the individual family members. Mike was the manager of the project, which involved deciding as expert the valuation and other disputes between two firms of accountants appointed by members of the family.

Manufacturer of automobile parts, UK, pre-litigation before the High Court: An Italian manufacturer of automobile parts had acquired a UK company. Initial advice was provided to the English solicitor, in connection with the formulation of a potential warranty claim. Mike was the manager responsible for the project.

Investment bank, London branch, expert witness in litigation before the High Court: Mike was instructed by the English solicitors of an investment bank to act as expert witness. Mike evaluated the economic impact on a dealer of his alleged wrongful dismissal by the bank. The matter settled after his expert report was served.

Privately-held family of companies, Middle East: A family in the Middle East was dividing its wealth between the individual family members. Advice was provided about the valuation of the individual businesses and assets and the separation process. Mike was the manager on the project.

Professional football club, England, petition under section 459 of the Companies Act 1985: Expert valuation advice was provided to a group which owns and manages a professional football club in England, in connection with a petition relating to an investment in the club. The work involved considering the economics of professional football clubs in England and the implications for shareholder value. Mike was the manager on the project. The matter went to trial.

Fruit importer, the Netherlands, litigation before the Dutch courts: Expert valuation advice was provided to the American and Dutch legal counsel of the former holding company of a Dutch importer of fruit, in connection with a dispute relating to the disposal of the Dutch company. Mike was the manager on the project, responsible for the production of an expert report.

Food-related intellectual property, Switzerland, arbitration: The Swiss owner of certain intellectual property in respect of the production of a new meat-based snack was in dispute with a Germany company responsible for the exploitation of that intellectual property. The work involved working closely with a team of accountants in Switzerland to provide expert advice including evaluating the future royalties due to the Swiss owner and the preparation of an expert report. Mike was the manager on the project in London.

Nursing homes operator, UK, litigation before the High Court: Expert advice was provided about the value of deferred and ordinary shares in a privately held UK company which owned and operated nursing homes, the shares being held by a former manager of the company. Mike was the manager on the project, responsible for the production of an expert report which was also used to support a mediation process. The dispute settled on mediation.

Re British & Commonwealth Holdings plc, UK, litigation before the High Court: A raft of actions arose from British & Commonwealth’s disastrous acquisition of Atlantic Computers in 1988 and the subsequent collapse of both groups. The dispute, which would have resulted in one of the largest civil trials ever in the UK, involved complex financial, valuation and accounting issues in the context of the computer leasing industry. Central to the claim was the true value of Atlantic Computers, and hence the amount of the loss suffered by British & Commonwealth, an issue complicated by the nature of the industry and the uniqueness of Atlantic’s product. Expert valuation and accounting advice was provided over a number of years. Mike was lead manager in the years leading up to the settlement of the dispute in 1999.

Government bonds, Eastern Bloc country, pre-litigation/arbitration: Expert valuation advice was provided to the Swedish holder of bonds issued by the predecessor of an Eastern Bloc country before the Second World War. When they were issued, the bonds were underpinned by the gold standard. The work involved investigating how that could be taken into account in any claim. Mike was the manager of the project.

Quality shoe manufacturer, UK, litigation in the High Court: Expert financial advice was provided to the solicitors of the UK subsidiary of a French fashion house, in connection with its defence of a claim for loss of profits as a consequence of the alleged breach of a supply agreement. Mike was manager on the engagement. The work involved evaluating in financial terms possible scenarios for the business. The dispute settled after the exchange of expert reports.

Adult education institute, UK, litigation in the High Court: Expert financial advice was provided to the institute in its dispute with a school sharing its facilities, including an evaluation of its business plans and the various courses of action available to it to ensure its financial security. Mike was the manager on the engagement, responsible for the production of an expert report. The matter went to trial.

National ship owning and operating group, South America, UK litigation/arbitration: Expert financial advice was provided to the English solicitors of a South American national ship owning and operating group, in respect of the currency of loss and issues of interest rates in a hyper-inflationary economy. Mike was the manager on the project, responsible for the production of an expert report.

Major shipper of ore, Australia, UK litigation/arbitration: Expert financial advice was provided to the English solicitors of a major Australian producer and shipper of ore, in connection with its defence of a claim for loss of profits as a consequence of the alleged breach of a contract of affreightment. The work involved evaluating the economic impact of the alleged breach. Mike was the manager on the project, responsible for the production of an expert report.

Insurer of a retail cash-back scheme, UK, litigation before the High Court: Expert financial advice was provided to the solicitors of a leading UK insurance company that had insured a retail ‘cash-back’ scheme where the underwriter had become insolvent. The work involved evaluating the value of the contingent ‘cash-back’ liability, which would not actually crystallise for many years. Mike was the manager on the project, responsible for the production of expert reports.

Distributor of cleaning products, UK, litigation before the High Court: Expert financial advice was provided to the solicitors of a UK company, in connection with its defence of a claim for loss of profits as a consequence of the alleged breach of an agreement to distribute environmentally-friendly cleaning products. Mike was the manager on the project, responsible for the production of an expert report.

Claims and disputes – Other advice

Logistics, UK, possible litigation before the High Court: Mike was instructed on behalf of the purchaser to investigate certain entries in the accounting records of, and the accounting for certain matters by, an acquired company in the context of the terms of a sale and purchase agreement.

Privately-held group of commercial and financial companies, Middle East, multi-jurisdictional litigation: Mike was instructed on behalf of a party in a major dispute between family members about the use and alleged misuse of assets of a financially troubled group. The project involved the review of financial information located in Saudi Arabia, and statements prepared by accountants on behalf of the adverse party.

Property development joint venture, account, UK, litigation before the High Court, Chancery Division: Mike was instructed by the solicitors of the claimants to review and comment on a disputed account of the profits of a property development joint venture prepared by the defendants. Mike prepared a witness statement relating to his written report, but was not asked to testify at trial. The court’s judgment did not discuss the subject matter of Mike’s review.

Outcome of an expert determination of balance sheet, business services company, UK: Accounting advice was provided to a UK business services company in connection with a dispute arising from an acquisition from former management. One of the issues in the dispute was the likely outcome of an expert determination of provisions in a closing balance sheet. Mike was the director on the project, responsible for preparing the advice.

Expert determination process, insurance company, UK: Mike provided advice about the expert determination process to an American insurance company bringing a substantial claim under the UK’s expert determination process following its acquisition of a UK insurance company. The claim settled before the determination process was completed.

Expert determination process and submissions, manufacturer of tank seals, UK: Mike provided advice about the process to the company and its American parent, following its acquisition from management. Mike drafted the company’s written submissions to the expert appointed to determine a post-acquisition dispute about operating profits.

Expert accounting advice, distributor of equipment, UK, arbitration before the International Chamber of Commerce in Paris: Expert accounting advice was provided to a distributor of equipment in connection with a dispute arising from the termination of a supply agreement. The work involved evaluating the distributor’s contractual entitlements. Mike was the manager on the project. The matter went to a hearing before a tribunal.

Expert determination, Grand Metropolitan plc and The Brent Walker Group plc, UK: Ray Hinton, then a partner of Arthur Andersen, acted as adjudicator in the dispute arising from the sale of the William Hill chain of bookmakers by Grand Metropolitan to Brent Walker. Mike was one of two lead managers supporting Mr Hinton throughout his four-year expert determination of a dispute which involved many hundred complex accounting and factual disputes, as well as issues of construction and law.

Accounting advice, telecommunications company, UK: Expert accounting advice was provided to a telecommunications company in connection with the proper interpretation and implementation of its licence as it related to the level of charges payable by other operators for interconnection with its network. Those charges were determined by the industry regulator, and were based on the allocation of relevant costs and a allowed return on relevant capital employed. Mike was lead manager on the engagement, which involved scrutiny of the theory and practice of cost accounting in the telecommunications industry.

Subsidiary of Middle-Eastern national oil company, UK, Mareva injunction by the High Court: The wholly-owned UK subsidiary of a national oil company of a Middle-Eastern country was the subject of a Mareva injunction. The injunction was considered and the ownership and operating of bank accounts that had been frozen was reviewed. Mike was the manager on the project, with responsibility for preparing an expert report.

Valuation advice – Tax-related contexts

Direct marketing group, UK: Valuation advice was provided by Mike to an international direct marketing group in the context of a restructuring of the group’s activities in the UK.

Brands in alcoholic drinks industry, Australasia: Valuation advice was provided by Mike to the owner of a portfolio of Australasian brands in the context of the disposal of the brands and the business they supported.

Listed company, UK: Valuation advice was provided by Mike to tax specialists about the possible structure and potential value under various scenarios of certain exotic securities, to be listed in Europe.

Patents held by manufacturer of submarine telecommunications systems, the Netherlands: Advice was provided to the Dutch subsidiary of an international manufacturer of submarine telecommunication systems about the value of certain patents. Mike was the manager on the project.

Manufacturer of parts for aircraft, UK: Advice was provided to the division of a listed UK company on discounted cash flow valuations that had been prepared for the tax authorities to support the values applied to a group reorganisation. Mike was the manager on the project.

Automotive parts manufacturer, Italy: Professional services were provided to the UK holding company of an Italian manufacturer of parts for the automotive industry in connection with the discounted cash flow valuation of the shares of the Italian company, for fiscal purposes following a group reorganisation. Mike was the senior manager on the engagement.

Valuation advice – Reorganization and insolvency-related contexts

Portfolio of music copyrights, UK: Advice was provided to the owner of a major portfolio of music copyrights, and its bankers, about the value of those copyrights based on discounted cash flow methods. Mike was the manager on the project.

Supplier of computer systems, UK: Expert valuation advice was provided to the liquidator of an insolvent company that provided computer systems. The liquidator was considering whether a group reorganisation prior to the liquidation involved transactions at an undervalue. Mike was the manager on the project.

Valuation advice - Financial reporting-related and regulatory contexts

Licence of international brand in film industry: Advice was provided to the purchaser of rights to the use of an international brand in the film industry about the value in use of those rights. Mike was a director on the project.

Customer book of a settlement and custody business, Europe, opinion under section 103(1)(b) of the UK’s Companies Act 1985: Mike was the director on the project, which involved valuing the non-cash consideration for the allotment of shares in a major European stock exchange.

Leading brand in construction industry, UK: Advice was provided to the owner of a leading brand in the UK construction industry about the value of the brand and the basis for establishing a royalty rate for its exploitation. Mike was the director on the project.

Financial institution, Europe: Advice was provided to a group which held a minority interest in a European financial institution, which currently operated as a not-for-profit organisation providing services to certain other classes of shareholders. The fair value of the interest was required for the purposes of financial reporting under US GAAP. The work involved considering the rights of different classes of shareholder. Mike was the manager on the project.

Intangible assets of telecommunications group, UK: Advice was provided to a group which had acquired a UK telecommunications company on the value of the intangible assets acquired, for the purposes of financial reporting under UK and US GAAP. Mike was the senior manager on the project.

Valuation advice - Value-based management-related contexts

Leading brands in the print media industry: Advice was provided to the owner of a portfolio of leading brands in the print media industry about the value of the brands as part of the group’s intellectual asset management strategy. Mike was the director on the project.

Owner and operator of ships: Advice was provided to the owners of one of the world’s largest privately-held fleets of vessels about how they could measure the performance of their investments in marine shipping operations over the previous 20 years. Mike was the manager on the project.

Audit and financial due diligence

Audit of financial statements, other accounting documents or accounting systems of limited liability companies or partnerships with the following principal activities:

  • international management of bulk carriers and tankers (UK GAAP, UK Companies Act);
  • ownership and operation of bulk carriers and tankers (IAS);
  • sale and purchase of bunkers (UK GAAP, UK Companies Act);
  • manufacture and distribution of stationery and art materials (UK GAAP, UK Companies Act and intra-group reporting to Swedish parent);
  • manufacture and sale of ancillary equipment for the plastics processing industry (UK GAAP, UK Companies Act and intra-group reporting to US parent);
  • manufacture and sale of industrial robots (UK GAAP, UK Companies Act and intra-group reporting to US parent);
  • manufacture and sale of cashless vending systems (UK GAAP, UK Companies Act);
  • distribution and sale of electrical components (UK GAAP, UK Companies Act and intra-group reporting to listed US parent)
  • packing, distribution and sale of DIY and garden hardware products (UK GAAP, UK Companies Act, listed on UK AIM)
  • ownership of commercial and residential properties (IAS)
  • development and sale of residential properties (UK GAAP, UK Companies Act);
  • operation of an internationally-branded national car and vehicle hire network (UK GAAP, UK Companies Act; statements of revenue of airport concessions)
  • provision of private education services (statements of student numbers); and
  • insolvency practitioners (controls over cash receipts and payments).

Financial due diligence, including the preparation of long form reports, in the following proposed transactions:

  • sale and purchase of owners and operators of LPG carriers. This included coordinating the work of teams in Antwerp, Luxembourg, Bermuda, Milan and Hong Kong;
  • sale and purchase of a number of UK-based employment agencies; and
  • sale and purchase of a UK importer of canned foods.

Publications

Mike has presented on subjects connected with valuation issues at conferences and training courses. He is the author of published articles on claims consulting and the estimation of damages.

Mike is the co-author of the accountant’s expert report case studies provided for D. Mark Cato’s book The Sanctuary House Case: An Arbitration Workbook, 1996, LLP.

Office

200 Aldersgate Aldersgate Street London EC1A 4HD United Kingdom
TEL +44 20 3727 1000 FAX +44 20 3727 1007

Expertise

Related Industries

Certifications

Chartered Accountant

Education

MA Natural Sciences (Physics and Theoretical Physics), Cambridge University, 1988

Association

Member of the Institute of Chartered Accountants in England and Wales, 1991
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