In recent months we have experienced a big increase in the number of potential negligence claims against advisers, typically accountants or other financial advisers that acted for a client on corporate deals that concluded at the height of the market.
With the economic outlook looking increasingly bright and having had the opportunity to assess the actual performance of businesses since acquisition, many companies have been able to stop concentrating on fire fighting to reassess whether the acquisitions made at the peak of the market have achieved the promised returns. Where they have not, businesses are increasingly reviewing the purchase process. Most importantly, they are assessing the advice provided by those assisting in the valuation of the expected benefits to see whether there has been a short fall in those benefits, and whether other losses suffered can be claimed from their financial advisers.
Whilst the improving economic position may explain why businesses are now taking this opportunity to reconsider past decisions taken, there is a much more pressing reason for all businesses to do so now. The height of the market in 2008 was six years ago. In circumstances where a business is purchased on the basis of negligent advice, the law allows you six years from the date you purchased that business to issue Court proceedings. There are some circumstances in which this time limit can be extended. If you are beyond this date, it may not necessarily rule out a claim. However, it is vital that if you purchased a business at the height of the market and the deal did not return the promised results, consideration should be given immediately as to whether any claims could be brought as a result to recover losses.
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