Evaluation of productivity gains – Enforceable clause

Type: Assessment of loss
Sector of activity: Press
Size (sales in €m): Not disclosed

Context

The group is a major player in the national written press

  • Following a ruling against it by the Tribunal de Commerce de Paris, accompanied by an enforceable clause, the group was facing the possibility of having to pay out several million euros in a short space of time.
  • The case had been the subject of two years of forensic evaluation of productivity gains

Our mission

Understand the various evaluations of the productivity gains presented by each of the parties and the court expert during the first instance ruling

  • Review of the appropriateness of the points of convergence and divergence, as well as the accuracy of the various evaluations
  • Financial and accounting demonstration of the items to be adjusted
  • Assistance with negotiations by highlighting the strengths and weaknesses as well as the level of compensation that would be acceptable given the facts of the case

Results

  • Our report was used for price negotiations between the parties
  • Our report enabled the parties to reach an agreement and complete the procedure
  • Assignment carried out in a very short time (3 weeks including negotiations)

Key success factors

  • Ability to analyze specific accounting and industrial problem sets within an extremely tight timeframe
  • Ability to summarize the elements of convergence and divergence between the positions of the various parties in order to put the strengths and weaknesses of each evaluation in perspective
  • And to present a reasoned counter-evaluation on the basis of the selected hypotheses: construction of a decision tree