Mediation Services: Corporate Conflicts and M&A Transactions
Deloitte is a prominent figure in the area of business advisory services. It employs top professional consultants and has an impeccable reputation pursuing a policy of non-involvement in corporate conflicts.
A combination of these factors enables the company to foster a constructive dialogue between M&A ( mergers & acquisitions) participants, or those involved in corporate conflicts, to find mutually beneficial solutions.
Based on its strong reputation, Deloitte develops optimal mediation solutions meeting the requirements of all parties involved in disputes.
What is mediation?
Mediation is a process in which a neutral third party, a mediator, assists conflicting parties in reaching a voluntary agreement. Mediators facilitate communication between negotiating parties, help them understand each other’s position and interests, find efficient solutions to contentious issues and enable the parties to settle disagreements independently. The main goal of any mediation is the amicable settlement of disputes.
Mediation differs from arbitration: it does not aim to determine the guilty party and force it to fulfill certain obligations (as in the case of litigation), but attempts to find a compromise. By avoiding mandatory compensation, mediation retains the possibility of the parties pursuing the transaction and preserving their relationship.
Mediation makes it possible to avoid litigation costs and allows the parties to find a solution based on informal agreements.
A mediator plays an impartial role in the conflict, thereby ensuring a neutral discussion of the disputed matters, even if there is mutual distrust between the parties.
Mediation is most likely to succeed when
- It is necessary to negotiate and sign an agreement
- The sides agree on issues that cannot be disclosed to third parties (especially in court)
- Confidentiality is important
- Emotions impede efficient negotiations between the parties
- The parties wish to preserve their business relationships
- The parties have no time for litigation
Mediation is less likely to succeed when
- A party doubts the mediator’s impartiality
- A party seeks to disclose the conflict to the public
- A party intends to resolve the dispute through litigation
- Judicial control is needed to enforce a court order
- The dispute involves criminal and/or constitutional matters
Outcomes of mediation
Mediation results in an official document (a protocol, plan, agreement or additional accord to the existing contract) specifying equitable, legal and practical obligations satisfactory to all concerned, developed through successful negotiations.
Once a mutually agreeable solution is reached, the mediator, at the parties’ option, may act as an independent observer ensuring that the sides’ interests are met and resolving minor issues as they arise, thus avoiding serious consequences.
© Deloitte LLP & Deloitte TCF, LLP, 2013
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