The Price of Everything and the Value of Nothing: Business Valuation in the Context of Fraud or Misrepresentation
Since the global financial crisis, disputes arising from major corporate M&A transactions appear to be on the rise. This is particularly true in Asia, where investors are in an unfamiliar environment and negotiating with local businesses that have yet to reach maturity. When post-acquisition disputes do erupt, they frequently refer to allegations of misrepresentation or fraud, with the concerned parties engaging in litigation or arbitration to resolve their disputes. In such cases, questions can arise as to the true value of the acquired business. Yet valuing businesses in such circumstances brings a unique set of challenges, as Managing Director Mustafa Hadi discusses.