Successful Arbitration Resolution in M&A Transaction of MXN $75 Million

Vega, Guerrero & Asociados is pleased to announce the successful representation of the sellers in an arbitration arising from a corporate acquisition (M&A) transaction valued at MXN $75 million. The dispute centered on the interpretation and application of a specific price adjustment clause included in the main transaction agreement.

This transaction involved a renowned Mexican manufacturing company specialized in the production and distribution of industrial connectors, which was jointly acquired by a leading Mexican company in the electrical and industrial components market and an international company with extensive experience in strategic acquisitions within the manufacturing sector. The arbitration originated from interpretative differences regarding the mechanisms agreed to determine post-closing adjustments, particularly in accounting and financial matters related to working capital and inventory levels.

Our specialized corporate and arbitration legal team developed a comprehensive strategy focused on clarifying the original contractual intent and demonstrating the correct application of the accounting and financial standards previously agreed between the parties. Through a rigorous process, including the presentation of high-level technical and expert evidence, we were able to substantially strengthen our clients’ position.

The final outcome was a satisfactory settlement for both parties, avoiding prolonged disputes and allowing the transaction to conclude in an efficient and fair manner. This case underscores the fundamental importance of having specialized legal counsel throughout all phases of an M&A transaction, particularly in the negotiation and precise drafting of complex clauses such as those related to price adjustments.

At Vega, Guerrero & Asociados, we reaffirm our commitment to delivering effective, strategic, and results-oriented solutions in the most complex corporate transactions

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