Amicable settlement

An amicable settlement is a negotiated resolution of a dispute between parties, avoiding formal court or arbitration proceedings. In M&A, post-closing disputes on warranties, earn-outs or price adjustments are frequently settled amicably, often with the assistance of an independent financial expert who provides a non-binding or binding opinion. A well-structured amicable settlement saves significant time and cost compared to formal proceedings, preserves confidentiality and avoids the reputational risks of public litigation.

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Example: following the acquisition of a Swiss software company for CHF 14.0 million, seller and buyer disagree on the earn-out calculation for CHF 900,000 due to different interpretations of ARR adjustments. Rather than initiating arbitration, both parties jointly mandate Hectelion to provide a binding expert opinion on the correct ARR figure, resolving the dispute within 6 weeks.

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Hectelion facilitates amicable settlements in M&A pricing disputes through independent financial expert opinions and mediation support.