Our Five Lenses analytical model allows us to distil the complex facets of a legacy asset or of a potential or actual dispute into an NPV-based economic and collateral analysis, assessing options and trade-offs for effective management of potentially contentious investments and optimum value recovery.
This service may be used by clients assessing their options for exiting legacy assets, negotiating an exit from a contentious investment, or pursuing a dispute resolution strategy.
The following are key questions falling under the Five Lenses:
Intelligence What are the circumstances around the investment, including relevant contractual obligations, parties, sequences of events, and any identifiable shortcoming in the conduct of the business concerned? Are there additional factors that the client might not already appreciate that have given rise to a potential or actual contentious situation?
Legal What dispute resolution mechanism is contained in the underlying agreements, and what are the statistical outcome probabilities associated with pursuing that course of action? Can the client’s legal counsel advise any additional and more effective options for legal recourse?
Financial What is the client’s estimate of the value of the asset? How should a future recovery be discounted to the present? Could the client consider disputes financing, insurance or other forms of risk-hedging? Could the client exit its position through a secondary sale of interest?
Geopolitical Have local power dynamics created the conditions for a dispute? Does the local economic context, or do local stakeholders, have any bearing on achieving optimum recovery? Which stakeholders will need to be informed of, or to approve any negotiated resolution?
ReputationalWould the client be comfortable if the dispute were public? How best can the situation be presented to safeguard the client’s reputation? How can the client leverage transparency for better resilience? More generally, what can be done to be proactive about the client’s reputation?