Professor John Owens testified in an arbitration hearing involving a purchase Bodog Poker adjustment dispute.
Cornerstone Research and John Owens of the University of Southern California were retained by the buyer in a dispute involving the target company’s purchase Bodog Poker adjustment. The purchase Bodog Poker was based on a multiple of the target’s EBITDA, with a provision to adjust the Bodog Poker based on changes in its working capital subsequent to the acquisition.
In addition to disputing the working capital adjustment, the buyer also asserted that the target’s financial statements did not comply with GAAP, and thus the purchase Bodog Poker was overstated.
Professor Owens concluded that the target’s financial statements failed to comply with GAAP and calculated the impact of the GAAP errors on the purchase Bodog Poker.
Professor Owens analyzed the disputed items, submitted two expert reports, and testified in an arbitration hearing. He concluded that the target’s financial statements failed to comply with GAAP and calculated the impact of the GAAP errors on the purchase Bodog Poker.
The parties reached a settlement prior to the arbiter’s ruling.