Roundtable Discussion at SCC Arbitration Institute: Valuation Experts – Appointments and Assignments
Published
An Inspirational Gathering of Legal and Valuation Experts
On Friday, 21 February 2025, a diverse group of M&A and dispute resolution lawyers, along with experienced valuation experts, met at the SCC Arbitration Institute premises for a roundtable discussion that promised to be both insightful and influential. The event focused on various aspects that counsel should consider when drafting agreements, particularly those clauses related to the appointment of valuation experts.
Key Points Discussed
During the discussion, attendees delved into essential components of clauses referring to the appointment of valuation experts. An overview of how SCC’s appointment process works, as well as the practicalities of valuation procedures, were shared and debated among participants.
Madeleine Thörn, the Deputy Secretary General and moderator of the roundtable, highlighted the significance of the discussion: “It is clear that there is strong interest in the work of valuation experts and that considering the process from both M&A and dispute resolution perspectives is highly valuable. SCC will explore the possibility of developing a standardised engagement letter for these services—something that would significantly streamline future valuation assignments.”
Essential Components of Valuation Clauses
The dialogue laid out the foundational elements that should be included in contractual clauses appointing valuation experts. These elements are crucial for ensuring clarity and efficiency in future valuation assignments. SCC offers a model clause that can be seamlessly integrated into contracts. Find it here: https://sccarbitrationinstitute.se/en/appointment-of-valuation-expert/
SCC’s Appointment Process
Participants were briefed on the SCC’s appointment process, which is designed to be transparent and straightforward. Further insights into the process are key to M&A and disputes lawyers to be able to advise their clients appropriately. Find out more here: https://sccarbitrationinstitute.se/en/how-does-the-scc-process-work/
Practicalities of Valuation Procedures
Joel Altschul, Partner at EY, presented on the practical aspects of valuation assignments, discussing timeframes, costs, and procedural considerations. He emphasised the importance of planning and managing expectations to ensure a smooth valuation process.
Additional Insights and Proposals
Malin Leffler, Partner at Roschier, underscored the importance of meticulous contractual construction and advocated for the use of SCC Expedited Arbitration Rules in connection with valuation expert assignments. Her insights provided a structured approach to drafting agreements that involve valuation experts.
Maria Holme, Partner at Mannheimer Swartling, offered valuable perspectives from an M&A standpoint, suggesting best practices for handling valuation expert assignments. Her contribution enriched the discussion with practical advice.
Timeline Expectations
The roundtable highlighted that valuation assignments typically span 6-10 weeks, approximately 30 business days. This timeframe sets a realistic expectation for parties engaging in valuation processes.
Standardised Engagement Letter
A significant takeaway from the discussion was the consideration of standardised engagement letters by SCC. Providing templates could substantially enhance efficiency and consistency in future assignments.
Proceeding Despite Resistance
The roundtable also tackled the scenario where one party refuses to participate in the valuation process. In such cases, proceeding with a single-party engagement letter was suggested as a viable solution to move forward.
In conclusion, the roundtable at SCC Arbitration Institute shed light on key aspects of valuation in M&A and dispute resolution contexts. The exchange of ideas and experiences among legal and valuation experts promises to pave the way for more streamlined and effective valuation assignments in the future.