Up, up, and...not away - English High Court faults SPA target in the aerospace industry for inadequate financial projections

The English High Court, in Triumph Controls UK Ltd v. Primus International Holding Co [2019] EWHC 565 (TCC), has found that proper and accurate financial projections by the sellers would have resulted in a lower purchase price for three companies, which manufactured complex metal components for aircraft.

This case highlights the perils, when selling a business, of failing to take care when warranting in relation to forward-looking projections. Here, the sellers failed to properly or accurately take into account key operational and financial assumptions when producing projection models. The result was a reduction of the purchase price.

Read More: Up, up, and...not away - English High Court faults SPA target in the aerospace industry for inadequate financial projections


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