The document discusses compulsory purchase orders and resolving disputes that arise from them. It outlines the typical CPO process, including notifying affected businesses, public inquiries, vesting declarations, and compensation negotiations. Compensation considers land and business property values, relocation or extinguishment costs, and lost profits. Early professional advice can help negotiations. Risks exist for both acquiring bodies and claimants if disputes are not resolved properly. The author's firm provides expertise in valuation, lost profits assessments, and representing clients throughout the CPO process.
Financial distress and your safety net during COVID-19Redchip
Temporary changes to insolvency laws mean businesses have a safety net so they can resume normal operations once the crisis has passed. This includes an increase to the statutory demand limit (to $20,000), and extended protections for directors against personal liability for trading whilst insolvent.
This safety net, however, is due to expire on 24 September 2020 and businesses can then expect sudden and aggressive debt recovery measures from creditors including the ATO.
Please join our webinar with insolvency experts Robert Champney and
Rebecca Forsyth who will discuss with you:
Changes to occur from 25 September - statutory demands, bankruptcy notices, and obligations as a director;
Debt recovery options available to your clients to improve cash flow; and
“Red flags” that determine financial distress, what options are available to restructure, and the need for proactive conversations with your client and legal advisors
Defending Against Bankruptcy Avoidance Actions (Series: COMPLEX FINANCIAL LIT...Financial Poise
In the event of a bankruptcy, the debtor or trustee may opt to take legal action in order to recover money or property that was transferred by the debtor prior to going bankrupt. These actions, whereby such transfers are effectively reversed, are referred to as “avoidance actions.” In this webinar, the expert panel discusses the applicable provisions of the Bankruptcy Code, common avoidance actions, and key considerations when planning for and defending against these actions.
To view the accompanying webinar, go to: https://www.financialpoise.com/financialpoisewebinars/on_demand_webinars/defending-against-bankruptcy-avoidance-actions-2/
- Importance of structuring - trading trust
- Role of ATO in insolvency of small business
- Liquidator actions to be mindful of
Presenter: Ben Sewell
Sewell & Kettle Lawyers
If you have further questions later please contact me
Email: bsewell@sklawyers.com.au
Common Issues and Strategies in Business Breakups (Series: Complex Financial ...Financial Poise
As any entrepreneur will attest, starting and operating a business comes with unique challenges. These challenges are a key reason that, by some estimates, half of the companies that are founded today will not exist four years from now. It can be argued that the effort and attention needed to find success precludes business owners from planning for failure. This webinar focuses on the realities of a failing business from the owners’ perspective. Join our panel of experts as they discuss the various considerations that should be given at the outset of start-up negotiations and through business breakup, including dispute negotiation and litigation.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/common-issues-and-strategies-in-business-breakups-2021/
Financial distress and your safety net during COVID-19Redchip
Temporary changes to insolvency laws mean businesses have a safety net so they can resume normal operations once the crisis has passed. This includes an increase to the statutory demand limit (to $20,000), and extended protections for directors against personal liability for trading whilst insolvent.
This safety net, however, is due to expire on 24 September 2020 and businesses can then expect sudden and aggressive debt recovery measures from creditors including the ATO.
Please join our webinar with insolvency experts Robert Champney and
Rebecca Forsyth who will discuss with you:
Changes to occur from 25 September - statutory demands, bankruptcy notices, and obligations as a director;
Debt recovery options available to your clients to improve cash flow; and
“Red flags” that determine financial distress, what options are available to restructure, and the need for proactive conversations with your client and legal advisors
Defending Against Bankruptcy Avoidance Actions (Series: COMPLEX FINANCIAL LIT...Financial Poise
In the event of a bankruptcy, the debtor or trustee may opt to take legal action in order to recover money or property that was transferred by the debtor prior to going bankrupt. These actions, whereby such transfers are effectively reversed, are referred to as “avoidance actions.” In this webinar, the expert panel discusses the applicable provisions of the Bankruptcy Code, common avoidance actions, and key considerations when planning for and defending against these actions.
To view the accompanying webinar, go to: https://www.financialpoise.com/financialpoisewebinars/on_demand_webinars/defending-against-bankruptcy-avoidance-actions-2/
- Importance of structuring - trading trust
- Role of ATO in insolvency of small business
- Liquidator actions to be mindful of
Presenter: Ben Sewell
Sewell & Kettle Lawyers
If you have further questions later please contact me
Email: bsewell@sklawyers.com.au
Common Issues and Strategies in Business Breakups (Series: Complex Financial ...Financial Poise
As any entrepreneur will attest, starting and operating a business comes with unique challenges. These challenges are a key reason that, by some estimates, half of the companies that are founded today will not exist four years from now. It can be argued that the effort and attention needed to find success precludes business owners from planning for failure. This webinar focuses on the realities of a failing business from the owners’ perspective. Join our panel of experts as they discuss the various considerations that should be given at the outset of start-up negotiations and through business breakup, including dispute negotiation and litigation.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/common-issues-and-strategies-in-business-breakups-2021/
There is an old carpenters’ expression, “measure twice, cut once.” M&A work is just one of many areas in business and law where this expression resonates. Buyers and sellers, like chess players anticipating many moves in advance, should envision and plan the route to get a deal done, including anticipated detours, at the onset of the transaction.
This webinar discusses the similarities and differences between basic M&A transaction structures; purchase price payment concerns; the most common issues that arise in the early stages of M&A transactions of all kinds; the relationship between ostensibly unrelated sections of an M&A agreement; and transaction timeline. One focus of this episode is a threshold question in many deals: whether the buyer will buy equity or assets. This episode will, in summary form, cover many of the issues discussed in greater depth in subsequent episodes.
Part of the webinar series: M&A Boot Camp 2021
See more at https://www.financialpoise.com/webinars/
Validity - Litigation Finance for Crisis Recovery - April 30, 2020Kate Boyd
The current climate of economic uncertainty and looming recession has created enormous challenges for law firms and their clients involved in or contemplating litigation. Clients need to pursue and defend business-critical claims while preserving capital, and firms must maintain the continuity and profitability of their litigation practices.
Find out how litigation finance can help.
Expert Valuation and Support Services - Executive CompensationJames Reda
We have over one hundred years of experience in providing executive compensation consulting services and are qualified as experts in various United States courts. Our lead consultants have provided expert opinions to governmental agencies such as the IRS, SEC, DOL and DOD.
Nuts & Bolts of Lost Profit Cases (Series: Complex Financial Litigation)Financial Poise
Business does not always go as planned. When a vendor breaches their contract to supply key parts, a lender reneges on their loan commitment, or a fire decimates a central distribution facility, the impacted business may have grounds to seek compensation in the form of the profits it would have earned had everything just gone smoothly. In order to successfully win (or defend against) any such claim, one must compile and analyze certain types of documents and information, understand and apply appropriate methodologies, and present their case in a manner consistent with that which the court or trier of fact requires. In this webinar, the expert panel discusses the circumstances that warrant lost profits claims, key considerations for both the claimant and defendant, and how such claims will ultimately be evaluated.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/nuts-bolts-of-lost-profit-cases-2021/
Elderly care conference 2017 - Workshop stream A - the legal framework: share...Browne Jacobson LLP
This presentation covers what the difference between a share sale and an asset sale is. Key documents involved in a transaction, due diligence, how to address risks and limitation of liability.
CheckMark Inc. has extensive experience in managing corporate insolvency situations, with financial, legal and fiscal overview of business management personnel, and to advise on the most suitable way in the steps necessary to, with the objective of business continuity, if possible, to preserve the economic interests of the members and that there are no liabilities on the part of managers.
presentation on a merger and acquisition, a quick revision on the subject on M&A with an overview of it, with example to understand the concepts better
An Introduction to Mergers & Acquisitions. If You Would Like to Learn How to Value a Company and become Proficient at Financial Modeling use our special deal offer until the 31st of December:
https://www.udemy.com/beginner-to-pro-in-excel-financial-modeling-and-valuation/?couponCode=exceldeal
There is an old carpenters’ expression, “measure twice, cut once.” M&A work is just one of many areas in business and law where this expression resonates. Buyers and sellers, like chess players anticipating many moves in advance, should envision and plan the route to get a deal done, including anticipated detours, at the onset of the transaction.
This webinar discusses the similarities and differences between basic M&A transaction structures; purchase price payment concerns; the most common issues that arise in the early stages of M&A transactions of all kinds; the relationship between ostensibly unrelated sections of an M&A agreement; and transaction timeline. One focus of this episode is a threshold question in many deals: whether the buyer will buy equity or assets. This episode will, in summary form, cover many of the issues discussed in greater depth in subsequent episodes.
Part of the webinar series: M&A Boot Camp 2021
See more at https://www.financialpoise.com/webinars/
Validity - Litigation Finance for Crisis Recovery - April 30, 2020Kate Boyd
The current climate of economic uncertainty and looming recession has created enormous challenges for law firms and their clients involved in or contemplating litigation. Clients need to pursue and defend business-critical claims while preserving capital, and firms must maintain the continuity and profitability of their litigation practices.
Find out how litigation finance can help.
Expert Valuation and Support Services - Executive CompensationJames Reda
We have over one hundred years of experience in providing executive compensation consulting services and are qualified as experts in various United States courts. Our lead consultants have provided expert opinions to governmental agencies such as the IRS, SEC, DOL and DOD.
Nuts & Bolts of Lost Profit Cases (Series: Complex Financial Litigation)Financial Poise
Business does not always go as planned. When a vendor breaches their contract to supply key parts, a lender reneges on their loan commitment, or a fire decimates a central distribution facility, the impacted business may have grounds to seek compensation in the form of the profits it would have earned had everything just gone smoothly. In order to successfully win (or defend against) any such claim, one must compile and analyze certain types of documents and information, understand and apply appropriate methodologies, and present their case in a manner consistent with that which the court or trier of fact requires. In this webinar, the expert panel discusses the circumstances that warrant lost profits claims, key considerations for both the claimant and defendant, and how such claims will ultimately be evaluated.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/nuts-bolts-of-lost-profit-cases-2021/
Elderly care conference 2017 - Workshop stream A - the legal framework: share...Browne Jacobson LLP
This presentation covers what the difference between a share sale and an asset sale is. Key documents involved in a transaction, due diligence, how to address risks and limitation of liability.
CheckMark Inc. has extensive experience in managing corporate insolvency situations, with financial, legal and fiscal overview of business management personnel, and to advise on the most suitable way in the steps necessary to, with the objective of business continuity, if possible, to preserve the economic interests of the members and that there are no liabilities on the part of managers.
presentation on a merger and acquisition, a quick revision on the subject on M&A with an overview of it, with example to understand the concepts better
An Introduction to Mergers & Acquisitions. If You Would Like to Learn How to Value a Company and become Proficient at Financial Modeling use our special deal offer until the 31st of December:
https://www.udemy.com/beginner-to-pro-in-excel-financial-modeling-and-valuation/?couponCode=exceldeal
Claims Trading in bankruptcy cases has advanced and grown in sophistication swiftly in recent history. Companies and their advisors should be prepared before wading into these waters. How will a claim be treated once transferred? What steps should a company acquiring a claim take to ensure the claim is paid? How should a claim be valued? What kind of documentation will be needed to properly transfer the claim? If a dispute arises regarding the claim, how should the acquiring company defend itself? For 2022, do the financial programs initiated under the CARES Act impact claims trading, and if so, how? This webinar focuses on understanding these issues and addressing best practices for advanced reorganization practitioners and advisors working on the cutting edge of bankruptcy transactions.
Part of the webinar series: BANKRUPTCY TRANSACTIONS - 301: ADVICE FOR THE ADVANCED PRACTITIONER 2022
See more at https://www.financialpoise.com/webinars/
Claims Trading in bankruptcy cases has advanced and grown in sophistication swiftly in recent history. Companies and their advisors should be prepared before wading into these waters. How will a claim be treated once transferred? What steps should a company acquiring a claim take to ensure the claim is paid? How should a claim be valued? What kind of documentation will be needed to properly transfer the claim? If a dispute arises regarding the claim, how should the acquiring company defend itself? For 2021, do the financial programs initiated under the CARES Act impact claims trading, and if so, how? This webinar focuses on understanding these issues and addressing best practices for advanced reorganization practitioners and advisors working on the cutting edge of bankruptcy transactions.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/bankruptcy-claims-trading-2021/
Bankruptcy Claims Trading (Series: Bankruptcy Transactions: Advice for the Ad...Financial Poise
Claims Trading in bankruptcy cases has advanced and grown in sophistication swiftly in recent history. Companies and their advisors should be prepared before wading into these waters. How will a claim be treated once transferred? What steps should a company acquiring a claim take to ensure the claim is paid? How should a claim be valued? What kind of documentation will be needed to properly transfer the claim? If a dispute arises regarding the claim, how should the acquiring company defend itself? This webinar focuses on understanding these issues and addressing best practices for advanced reorganization practitioners and advisors working on the cutting edge of bankruptcy transactions.
To listen to this webinar on-demand, go to: https://www.financialpoise.com/financial-poise-webinars/bankruptcy-claims-trading-2020/
To listen to this webinar on-demand, go to: https://www.financialpoise.com/financial-poise-webinars/bankruptcy-claims-trading-2020/
The engagement involved a dispute between a ceding company and a reinsurer over final balances due between them in an effort to commute a book of business.
RESTRUCTURING, INSOLVENCY & TROUBLED COMPANIES 2022: Bad Debtor Owes Me Money!Financial Poise
Sometimes it begins when a client, tenant, or customer starts to slow-pay, with the result that your accounts receivable start to accrue gradually. Other times the issue presents itself more suddenly. Either way, you find your company owed a great deal of money that looks like it may not be collected because your client/tenant/customer has filed bankruptcy, has commenced an assignment for the benefit of creditors, has been put into receivership, or is otherwise just plain insolvent. What do you do? What should you not do? The topics discussed in this webinar include the pros and cons of putting a counterparty into involuntary bankruptcy; when and how you may be able to pursue third parties (like guarantors, directors, or officers) for the amount owed; risks related to preference attack; pros and cons of sitting on a “creditors’ committee” in a Chapter 11; how to negotiate for “critical vendor” protection in Chapter 11; and practical guidance for continuing to provide goods or services to an insolvent counterparty.
Part of the webinar series: RESTRUCTURING, INSOLVENCY & TROUBLED COMPANIES 2022
See more at https://www.financialpoise.com/webinars/
REAL ESTATE LAW DUMBED DOWN 2022 - Representing the Commercial TenantFinancial Poise
A commercial tenant views a lease negotiation quite differently than does the landlord. As most leases tend to be drafted by the landlord, a tenant must begin an uphill battle to gain as many concessions as possible. This is an arduous task made easier by a full understanding of what are the most important issues for a tenant in a commercial lease transaction.
How does the financial profile of the tenant enter into the picture? Where can a tenant get hurt the most by hidden costs or unforeseen expenses? Why is “leverage” the most important concept to consider in this process? This webinar will help one understand how the tenant, generally the underdog in lease transactions, can turn the tables and become the most powerful player in the leasing game.
Part of the webinar series: REAL ESTATE LAW DUMBED DOWN 2022
See more at https://www.financialpoise.com/webinars/
THE NUTS & BOLTS OF BANKRUPTCY LAW 2022: The Nuts & Bolts of a First Day HearingFinancial Poise
Even when a bankruptcy petition is the result of a soft-landing rather than a freefall, filing a chapter 11 petition is a disruptive event. To facilitate the debtor’s entry into chapter 11 with as little disruption as possible, first day motions are filed to ensure that a debtor-in-possession can minimize interruptions and continue operating its business in order to achieve its goals in chapter 11. This webinar provides an overview of the administrative and operational first day motions typically filed by chapter 11 debtors and the process for requesting a first day hearing, providing notice of the hearing, and ensuring that the hearing runs smoothly.
Part of the webinar series: THE NUTS & BOLTS OF BANKRUPTCY LAW 2022
See more at https://www.financialpoise.com/webinars/
Points to keep in mind when looking for an ATE on a multi claimant commercial...Demi Edmunds
Matthew Williams answers the following question: When looking for ATE on a multi claimant commercial claim, are there additional points to keep in mind?
Sometimes It Begins When A Client, Tenant, Or Customer Starts To Slow-Pay, With The Result That Your Accounts Receivable Start To Accrue Gradually. Other Times The Issue Presents Itself More Suddenly. Either Way, You Find Your Company Owed A Great Deal Of Money That Looks Like It May Not Be Collected Because Your Client/Tenant/Customer Has Filed Bankruptcy, Has Commenced An Assignment For The Benefit Of Creditors, Has Been Put Into Receivership, Or Is Otherwise Just Plain Insolvent. What Do You Do? What Should You Not Do? The Topics Discussed In This Webinar Include The Pros And Cons Of Putting A Counterparty Into Involuntary Bankruptcy; When And How You May Be Able To Pursue Third Parties (Like Guarantors, Directors, Or Officers) For The Amount Owed; Risks Related To Preference Attack; Pros And Cons Of Sitting On A “Creditors’ Committee” In A Chapter 11; How To Negotiate For “Critical Vendor” Protection In Chapter 11; And Practical Guidance For Continuing To Provide Goods Or Services To An Insolvent Counterparty.
Part of the webinar series: Restructuring, Insolvency & Troubled Companies 2021
See more at https://www.financialpoise.com/webinars/
Representing Asset Purchasers in Bankruptcy (Series: Bankruptcy Transactions ...Financial Poise
Representing an asset purchaser in a bankruptcy proceeding presents unique benefits and challenges for a professional business advisor. Companies considering acquiring assets out of bankruptcy must understand more than the simple concept of acquiring the target assets “free and clear,” under the Bankruptcy Code. As such, professionals advising these companies must understand and be able to counsel their clients regarding various matters, such as the benefits and drawbacks of serving as a “stalking horse,” asset purchaser; drafting and negotiating the terms of an asset purchase agreement and sale order with the bankrupt debtor and other parties involved in the bankruptcy proceedings; strategies for acquiring assets at auction or by alternative means; and seeking bankruptcy court approval of a proposed transaction. For 2021, professionals must also understand the impact that the economic programs enacted under the CARES Act may have on purchasing such assets. This webinar focuses on understanding these concepts and addressing best practices for advanced reorganization practitioners and advisors.
To view the accompanying webinar, go to:https://www.financialpoise.com/financial-poise-webinars/representing-asset-purchasers-in-bankruptcy-2021/
2. 1 Compulsory purchase orders Resolving disputes
“Compulsory purchase of
property is an essential tool in
a modern democratic society.
It facilitates planned and
orderly development … Hand in
hand with the power to acquire
land without the owner’s
consent, is an obligation to pay
full and fair compensation.”
— Lord Nicholls of Birkenhead
3. 2Compulsory purchase orders Resolving disputes
Whilst HS2 is attracting much media attention, the use of
Compulsory Purchase Order (CPO) powers is not limited to major
National Infrastructure projects. For example, the use of CPOs has
always been, and will continue to be, central to urban regeneration
and is likely to play a central role in shaping the UK.
We have advised on numerous claims following
compulsory purchase of business premises, including
relocation, extinguishment and hybrid cases, acting on
behalf of acquiring bodies and affected businesses.
The CPO process and considerations
Compensation considerationsAffected businesses notified of CPO
Public Inquiry held
Secretary of State decision
Notice of Execution given to affected businesses
General Vesting Declaration Ownership taken
Compensation negotiations take place in respect of
land/property value and business losses
Relocation or extinguishment of business
Ability to continue to use property/land through
leases once possession has passed to be considered
Compensation settled
►► Value of land and buildings
►► Injurious affection — reduction in the value of
remaining land when only part or no land is taken
►► Relocation given due consideration
►► Quantification of:
►► Flux state — business unable to develop as
originally planned
►► Wasted management time incurred
►► Additional labour costs, overtime and
redundancy costs
►► Disruption through blight
►► Additional costs incurred
►► Move/build costs incurred
►► Risks of delays in relocating
►► Lost profits through business interruption
►► Lost profits through business relocation
or extinguishment
Post
acquisition
Preandpost
acquisition
Pre-acquisition
Ongoingdiscussionsaimedatreachingasatisfactorysettlement
For land owners, and acquiring bodies, the process surrounding
compulsory acquisition can be a burden for many years.
In some situations it is possible for the parties to reach an
agreement for the land transfer without the need to exert
compulsory purchase powers.
Where this is not possible the CPO process will begin and is likely
to follow the steps set out below.
The opportunity to resolve compensation without the need for
litigation remains, and is often preferred by all parties, even when
a CPO is used to acquire land.
Taking professional advice at an early stage can facilitate
meaningful discussions, and provide realistic assessments,
to enable compensation to be agreed through negotiation or
mediation. We have extensive experience of advising clients in a
range of complex civil matters, providing expert accounting advice
and oral evidence in connection with court proceedings and other
forms of dispute resolution.
4. 3 Compulsory purchase orders Resolving disputes
Early assessment
We apply a pioneering approach and expert financial knowledge
to help assess a fair level of compensation.
In the Lands Tribunal case of Optical Express (Southern) Limited
vs. Birmingham City Council (2004), the evidence presented
by EY partner Sara Fowler set a precedent in relation to the
basis on which compensation for post-possession loss of profits
are calculated.
We can work as part of a wider team alongside other
professional advisors to supplement their work, providing
support and ensuring a consistent approach. In more complex
cases we can assist with project management of the claim.
Our commercial experience of valuing businesses for sale
is highly useful in negotiating compensation, following the
extinguishment of a business, and in calculating lost profits
whether the business has been extinguished, relocated or
treated as a hybrid of the two.
We have worked on claims ranging from £1 million to
£30 million and our experience includes giving expert oral
evidence to the Lands Tribunal on several occasions.
We will work with you to deal with the claim and will use our
extensive experience of this type of work to:
►► Provide robust and objective advice
►► Offer practical and commercial ideas
►► Consider the profile and sensitivities of the claim
►► Tailor our approach to the nature and size of each situation
Our aims are to support a timely resolution to quantum disputes
and to provide value for money to encourage future investment
and development in public interest projects.
What are the risks?
There are considerable risks for both parties in a CPO; the acquiring body implementing the CPO and the business which is subject to it
Some common examples are set out below.
Acquiring bodies risks
►► Not taking professional advice early enough in the process
to ensure there is sufficient budget to cover future
compensation claims
►► Affected businesses over compensated due to insufficient
professional advice
►► Bad publicity and negativity around future development
►► Likely to be liable for the majority of costs incurred
by the Claimant
Claimant risks
►► Not devoting sufficient management time early
enough in the process
►► Not planning for relocation or being unable to
demonstrate why relocation has not been possible
►► Failing to maintain sufficient documentation to support
consequential cost and loss of profit claims and hence
inability to recover, in full, costs incurred and profits lost
►► Leaving it too late to plan the transition to new
business premises when relocation or partial
extinguishment occurs
►► No reflection of the time value of money. Interest on
compensation is currently set at 0.5% below base rate
Common risks
►► Currently no pre action protocol to assist resolution of disputes, therefore, may be reliant on
expertise and experience of professional advisors to promote alternative dispute resolution
►► Significant costs incurred by both parties if the matter is disputed
►► Protracted process which drains cash resources and staff investment
►► Not seeking professional advice at crucial times
5. 4Compulsory purchase orders Resolving disputes
EY’s credentials
Relocation or extinguishment?
A claimant should take appropriate action to mitigate losses in
the period prior to the closure of the business. Such actions will
include seeking alternative premises to which the business at the
premises to be acquired could be relocated. Where businesses are
unable to find suitable alternative premises, the end result is often
the extinguishment of all or part of the business.
However, often it is not immediately apparent whether the
business in question was extinguished or whether it was in
fact relocated.
In one instance, we were asked to investigate whether a new
business started by the owner was, in reality, a continuation of
the old business which, it was claimed, had been extinguished.
Our work included examining the customer base and the business
operations of the historical and new businesses.
Assessing lost profits through
extinguishment
Parties involved in CPO cases where extinguishment has occurred
should seek expert valuation advice.
An average of the profits over the last three years (the traditional
approach) does not usually give a realistic assessment.
For each situation, the accounting evidence has to be examined
and an assessment made of how the business would have
performed, but for the CPO.
In the Lands Tribunal case of Optical Express (Southern) Limited
vs. Birmingham City Council (2004), Sara Fowler of EY acted as
expert witness for the claimants.
The decision made by the Lands Tribunal in this case set a
precedent in relation to the basis on which compensation claims
for post-possession loss of profits of a business as a result of CPOs
are calculated.
Acting on behalf of The Claimant
Minor detour?
End of the road?
Find out how EY can
support your business if it
is affected by a compulsory
purchase order.
6. 5 Compulsory purchase orders Resolving disputes
Acting on behalf of The Developer
Regeneration, regeneration, regeneration
The regeneration of towns and cities can often result in developers
being subject to claims for loss of profits, as the development
works undertaken can have a temporary, or permanent, impact on
local businesses.
In such situations developers should seek expert advice to assess
the legitimacy of the claim received.
We were appointed by the development company behind a major
regeneration project in one of the UK’s largest cities to provide an
assessment of a claim received from a retail business. The claim
related to both temporary and permanent loss of profits resulting
from the impact on one of its local stores of a newly developed
retail complex.
We worked collaboratively with the developer, and its other
advisors, to understand the likely impact of the development on
the claimant’s store and to assess the claim received. We prepared
a rebuttal of the claimant’s claim and represented our client
in negotiations which resulted in a successful settlement,
substantially below the value of the initial claim.
EY’s credentials (contd.)
Acting on behalf of
The Acquiring Authority
Costs vs. long term benefits
The Acquiring Authority had received a business extinguishment
claim in the region of £2mn.
We undertook a limited review of the claim and identified a number
of areas where the claim was unlikely to stand up to challenge.
Following a meeting between the parties and their professional
teams an all settlement was reached for £875,000.
In this case our fees amounted to approximately 1% of the initial
claim amount. Whilst it will always be possible to obtain cheaper
quotations we believe our expertise, experience and approach
enables our clients to achieve a high return on their investment.
Our experience of acting on behalf of acquiring bodies and
affected businesses is very useful in assisting clients during
negotiations and reaching a commercially sensible outcome.
Full speed ahead?
Red signal?
Find out how EY can keep you
on the right track if you are
implementing compulsory
purchase orders or
development consent orders.
7. 6Compulsory purchase orders Resolving disputes
Contact us
Fraud Investigation Dispute Services
Sara Fowler
Birmingham
T: + 44 121 535 2311
E: sfowler@uk.ey.com
Hannah Griffin
Birmingham
T: + 44 121 535 2948
E: hgriffin@uk.ey.com
Andrew Johnson
Birmingham
T: + 44 121 535 2833
E: ajohnson2@uk.ey.com
Lauren Jones
Birmingham
T: + 44 121 535 2712
E: ljones3@uk.ey.com
David Bell
Glasgow
T: + 44 141 226 7333
E: dbell1@uk.ey.com
Ruth Lawson
Leeds
T: + 44 113 236 4367
E: rlawson@uk.ey.com
Max Mitchell
London
T: + 44 20 7951 0185
E: mmitchell@uk.ey.com
Jack Clitheroe
Manchester
T: + 44 20 7951 8417
E: jclitheroe@uk.ey.com
What our clients say
“EY grasped the issues quickly, the team demonstrated
commerciality and practicality as well as responsiveness.
The team’s knowledge of CPO law and expertise was clear
and instrumental in helping us arrive at a settlement in
our favour.”
“The ability of the team to articulate the case and to
explain, in simple terms, the complexities of business
valuations exceeded my expectations in every respect.”
“Thank you for your efforts — your understanding of
the financial issues surrounding the Company was
first class combined with both the confidence that you
express, your expertise and the sensitivity you showed
in handling the difficult moments. As I have said before,
the quality of your written output is quite superb and I am
looking forward to working with you again following my
recent recommendation.”