Kroll helps private equity unravel problematic acquisition
A private equity firm had successfully completed an acquisition, but the company’s management had then undertaken an add-on acquisition which was causing problems. Kroll helped the client to understand the nature of the post-acquisition issues: key contracts in dispute and close to termination; promised contracts not converting; and services being outsourced to the seller on uncompetitive terms. Kroll was able to help gain control of the business from the seller who was still in situ and define the degree of misrepresentation. This was then used by the client to re-negotiate the terms of the deal, with removal of directors and returning of some of the originally purchase price.