Multi-Billion-Dollar Automotive Client

Brief

HKA was retained by a major multi-billion-dollar automotive company to provide testimony related to a breach of fiduciary duty matter.

What we did

Counsel for an automotive company retained HKA to provide testimony related to a breach of fiduciary duty matter. In this instance, the plaintiff was alleging that the minority shareholder was not properly compensated for its equity portion of the company at the time of a transaction.

Our work included:

• Analyzing historical financial results to develop trends related to revenue growth, profit margins, capital expenditures, and working capital requirements
• Creating discounted cash flow models based on management’s projections, industry analysts, and historical results
• Developing an equity cost of capital that reflected the risk profile of the company
• Reviewing comparable stock price levels for publicly traded “guideline companies” to calculate valuation multiples with the application of appropriate premiums and discounts
• Analyzing contemporaneous transactions to determine multiples paid for similar companies