Gordian Group was retained as an expert regarding damages incurred by Heritage Partners as a result of financial misrepresentations made in connection with its acquisition of Creative Solutions Group.
Case Study
Creative Solutions Group
CLIENT: Counsel to Creative Solutions Group ("CSG") and Heritage Partners
Industries
Consumer/Food/RetailProfessionals
Henry OwsleyBusiness Profiles
Private Equity / Entrepreneur RepresentationsSituation
Heritage Fund II Investment Corporation purchased CSG from Pentzer Corporation in March 31, 1999. In connection with the sale, Heritage claimed that CSG’s actual 1998 earnings were materially lower than Pentzer had represented.
Engagement
Gordian Group was engaged as an expert by Choate, Hall & Stewart on behalf of Heritage and CSG in conjunction with litigation against Pentzer to recover damages for the alleged misrepresentations.
Outcome
Gordian Group conducted its analysis and determined the fair market value of CSG as of March 31, 1999, using the actual 1998 earnings levels. Gordian Group concluded that the fair market value of CSG was significantly lower than the price actually paid by Heritage, which guided the ultimate settlement.