Neutral Accountant's Role in Arbitration | FTI Consulting

The Neutral Accountant’s Role in the Arbitration Process

Resolving Working Capital & Earnout Disputes Without Costly Litigation

Forensic & Litigation Consulting | Securities Docket (Reprint)

February 14, 2019

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With the global value of M&A transactions soaring to unprecedented heights, companies are looking at ways to avoid costly and time-consuming post-transaction disputes. Certain types of disputes, such as those involving differences in the interpretation of accounting or financial reporting and valuation, may require the parties to engage a neutral accountant as part of an arbitration process instead of entering litigation.

In the arbitration process, a neutral accountant delivers a binding decision, but follows a more streamlined procedure very different from a trier of fact in a courtroom. Using a neutral accountant can be a more efficient and less costly way to resolve the issues in the dispute, compared to enduring a lengthy and expensive litigation process.

In an article originally published in Securities Docket, Jeff Litvak explains how to work effectively with a neutral accountant and examines the position’s role in two areas where disputes commonly arise post transaction, working capital and earnouts.

Posted with permission from Securities Docket. Copyright ©2019. All rights reserved.

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