Business Valuation

Antitrust claims that may be owed to a company can be an unrecognized but valuable component of your business valuation.

During the sale of a company, generally speaking, rights to antitrust claims are not sold, unless specifically delineated, but there is language that should be used to protect the seller in these matters.

Likewise, on the other side of that balance, when buying a company, there may be additional value in the form of future antitrust claims, where the financial injury took place prior to closing the purchase.

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A few sentences properly placed in an asset purchase agreement can help insure the purchase of antitrust claims as well.

Properly placed language in an asset purchase agreement that retains or transfers all rights to antitrust claims whether known or unknown with respect to your top five or ten raw materials or cost drivers can mean the difference of tens of thousands or even millions of dollars being retained or purchased.

It is surprising how much value these claims may have, and how regularly antitrust claim provisions are left out of asset purchase agreements. Companies that have broadly sold their rights and claims in asset purchase agreements often are able to retain the value of antitrust claims.  Make sure you recognize the existence and maximize the value of these potential antitrust claims.

VALUE-ADDED SOLUTIONS FOR ABSENT CLASS MEMBERS

Businesses, banks, private equity firms, and large purchasers of raw materials routinely suffer financial injury as a result of another party's violation of federal law.  These clients often want to recover on their own behalf, and may even have a fiduciary duty to recover funds on behalf of their shareholders. Yet many of these larger businesses do not want to be perceived as, or take on the exposure of being a litigant. Those businesses want, and often in fact need, the benefit of having experienced counsel to help maximize recoveries in class action matters, without the exposure, burden and duties of being an actual litigant.  The Firm helps these clients maximize their recoveries in these matters.

To learn more about the impact of antitrust claims on business valuation, contact us today!