KSV Advisory Canada’s Leading Boutique Advisory, Restructuring and Valuations Firm.

Purchase Price Dispute: Hotel Acquisition

We were retained by counsel to provide valuation and corporate finance advisory services in the context of a purchase price dispute involving the acquisition of a hotel and resort. The resort included a hotel, conference facilities, and leisure activities (watersports, ski, golf, etc.). The parties disputed the working capital adjustment mechanism to the purchase and sale agreement particularly as it related to customer deposits and unearned revenue.

Our analysis involved the review of the purchase and sale agreement and related schedules, an analysis of standard industry terms, and an analysis of the target’s financial data. We provided an expert report and expert testimony setting out our analysis of the working capital mechanism.