Page 12 - Dittmar Quarterly Q1 2019

METHODS OF RESOLVING M&A DISPUTES
1%
6%
20 %
4%
69 %
Settlement negotiations Informal mediation Institutional mediation Arbitration
General courts of law
QUARTERLY Q/1 – 2019
DISPUTE POWERHOUSE
M&A Dispute Survey 2019
D&I’s M&A Disputes Survey studied the causes of disputes arising from M&A transactions, how such disputes are resolved and what changes can be expected in the M&A disputes landscape in terms of, for instance, artificial intelligence and Brexit.
The likelihood that an M&A transaction leads to disputes has remained unchanged since the last survey made in 2015. The proportion of disputes resolved in settlement negotiations has, however, decreased – just over 2/3 of all disputes were settled through negotiations, while the corresponding figure in the 2015 survey was 9/10.
The number of arbitration proceedings has strongly increased – 1/5 of all disputes were resolved in arbitration, whereas the corresponding figure
in 2015 was 1/20.
P12
“The number of M&A transactions has increased during the economic boom of the past few years. When the economic growth starts to slow down, the interest in raising contractual claims may increase. Accordingly, the significance of prevention of
disputes in the contract drafting stages increases.”
- Jan Ollila, Senior Partner