We were instructed as forensic accountant to act as expert between a vendor and purchaser of a medical supplies business.
The vendor was selling his medical supplies business. The price to be paid by the purchaser was to be based on a set of completion accounts prepared by the vendor’s accountants. However the purchaser was not happy with the accounting treatment relating to several items within the completion accounts.
There were issues regarding the valuation of stock, the inclusion of significant items in sales which were based on long term contracts which had not yet come to fruition and also a major issue regarding bad debts.
In our role as forensic accountant, we determined each of these areas of dispute on its merits and reported back to the parties, who accepted our decision and the deal was then finalised.