M&A And Shareholder Arbitration

We have seen merger and acquisition (M&A) and shareholder disputes becoming more litigious in recent years, though for different reasons. With regard to M&A disputes, the intensified personal liabilities of board members and managers to investigate all business matters potentially relevant to their business have left many market participants with no choice but to analyse transactions for million-dollar purchase price recoveries. Concerning shareholder disputes, it is foremost because of increased transparency and the self-awareness of shareholders to enforce their rights and maximise their economic position.

From a damages perspective, M&A and shareholder arbitrations are only partially comparable. Damages in M&A arbitrations involve accounting, forensic or corporate finance aspects, sometimes in addition to valuation issues. In contrast, damages in shareholder disputes most often deal with the correct valuation of a specific business. From a damages point of view, methodical