Correcting Share Value

Relevant Background Information:

Our client, a Mexican national businessman that founded a successful company in the area of spare parts and accessories and was the acting General Manager, was selling his remaining shares to a family owned multinational company, which already controlled 75% of shares. The aim of this European company was to get rid of all shareholders who were not part of their powerful family. They recently accomplished this in a subsidiary in Hong Kong and Mexico was the only remaining obstacle so they could achieve their goal internationally.

Problem:  

Upon review of previous transactions, during the last five years, it was obvious that the foreign partners obtained shares in an opportunist way, negatively affecting our client. Our aim was simply to see how the abuses of the past could somehow be reflected in this transaction.

Solution:  

We arduously worked with our client and his team in order to prepare an effective presentation so we could get a fair price for the shares. Even though we were warned, before starting the presentation, that the counterpart thought that the amount of $6M USD was reasonable and it was its “last offer”, we reached an agreement for more than the double ($12.3M USD) merely three hours later.