Corporate Mediations
Paratum brings vast financial experience as well as mediation expertise to bear in order to understand complex situations quickly and to help the participants reach a resolution by:
- Getting them to agree and sign up to a mediation process
- Understanding the underlying issues and creating a safe forum for discussion
- Spending time with them together and individually in break out rooms to assist their process
- Ensuring that each of them feels properly “heard” as part of the process
- Ensuring that they appropriately document any resolution reached
We get involved in disputes between
Investors/Owners and Management teams – to identify the conflicting needs of each but also helping them understand the benefits of resolution if they want to continue working together.
We can facilitate discussions where there are differences regarding a variety of matters including future strategy, ongoing roles and succession within the business.
Example 1 A Private Equity House has a dispute with a management team for not delivering on their forecasts and the Management team feel that the PE House has not provided them with the promised funds or other resources to deliver the forecast. They must either seek resolution and move on or face the financial and other consequences of changing the management team or the investor.
Resolution: acceptance of historic shortcomings and a revised business plan acceptable to both parties
Example 2 A Management team feels that the Founder and owner of the business needs to move out of his senior role in order to allow the business to move to the next stage as there are increasing issues with control, staff progression & retention and long-term strategy. The owner founder is not yet willing to relinquish control.
Resolution: The creation of an executive board, an agreed timeline for the owner to move to Executive Chairman and the introduction of an employee share scheme for the most senior board members coupled with a business plan to target and monitor performance of the executive board.