Disappointing Acquisition Makeover into Beautiful Outcome
(Purchase Price Adjustment) – A group of individuals closed on the purchase of a manufacturing company serving the retail fashion and entertainment industries. A poorly conceived purchase agreement resulted in substantial unfavorable closing adjustments. Shortly thereafter the largest client left and losses mounted. The buyer’s accountants and lawyers said there was nothing to be done due to the unfavorable contract. Janas felt otherwise and was retained to renegotiate, resulting in a 38% reduction in price, allowing the company the breathing room it needed. It has since recovered its luster, achieving stunning growth.