FacultyFaculty/Author Profile

Erik C. Lioy

Grant Thornton LLP

Charlotte, NC, USA


Erik Lioy is the national managing partner of Grant Thornton LLP’s Forensic  Advisory Services practice. Prior to his national leadership role, Erik held local and regional leadership roles within Grant Thornton.

Experience

Erik has extensive experience advising buyers and sellers in post acquisition disputes regarding the calculation of working capital, net equity, earn- outs and other contingent consideration calculations. In addition, he has served as a court appointed expert and arbitrator in a post acquisition dispute matters.

Erik’s case work also includes providing financial due diligence and structuring advice to strategic and financial buyers. He has experience negotiating acquisitions, preparing closing balance sheets and integrating target companies.

Erik has provided expert testimony and issued expert reports on damages and various accounting, business and financial matters including post acquisition disputes. Prior to joining Grant Thornton, Erik practiced with a forensic accounting and consulting firm. He has also held senior financial appointments with companies where he was responsible for financial reporting, analysis and acquisitions.

Practice areas

  • Forensic and investigative services
    • Internal investigations
    • Board investigations
    • Asset tracing
    • Government/regulatory matters
    • Fraud prevention and detection
  • Litigation and dispute services
    • Arbitrator/neutral assignments
    • Contract disputes
    • Damages analysis
    • Expert testimony
    • Lease disputes
    • Partnership disputes
    • Purchase price disputes

Education and professional credentials

University of Pittsburgh, MBA Duquesne University, BSBA
Certified Public Accountant, NC License 30969 Certified Fraud Examiner (CFE)
Certified in Financial Forensics (CFF)
Certified Construction Auditor (CCA)
Certified Global Management Accountant (CGMA)

Representative post-acquisition dispute assignments

  • Served as a court appointed expert in a post-acquisition dispute between a publically held company and the selling shareholders of a software and consulting company. Work performed included interviewing current and former employees of the target company, investigation of travel records and evaluation of revenue recognition for software sales and services. Rendered expert report and provided deposition testimony regarding the proper calculation of three year earn-out provision in a purchase agreement.
  • Served as a neutral arbitrator in connection with a closing working capital dispute between the buyer and seller of a software company. Disputed items included reserve for bad debt, contingent liabilities and revenue recognition.
  • Served as a neutral arbitrator in a post-acquisition dispute between a public software company and a private equity group. The dispute involved the determination of a closing working capital purchase price adjustment. Disputed items involved revenue recognition, valuation of accounts receivable, accrual of payroll cost and accrual of other operating expenses. A binding reasoned award was issued.
  • Served as neutral arbitrator in a post-acquisition dispute between a manufacturing company and individual selling shareholders. The dispute over the final purchase price adjustment involved several items in the closing balance sheet including valuation of accounts receivable, inventory and construction-in-process. A binding reasoned award was issued.
  • Served as neutral arbitrator in post-acquisition dispute related to the acquisition of a contract research organization. Dispute included revenue recognition issues for multiple contracts. A binding reasoned award was issued.
  • Served as neutral arbitrator in connection with a dispute regarding the closing balance sheet and related purchase price adjustment from the sale of a post-secondary professional training academy. Issues arbitrated included accounts receivable valuation, revenue recognition and various accrued operating expenses. A binding reasoned award was issued.
  • Served as neutral arbitrator in connection with post-acquisition closing working capital dispute for a technology company. Issued bidding reasoned award.
  • Provided expert reports and testimony at arbitration in connection with the acquisition of a hospital. Arbitrator ruled favorably in 4 of 5 disputed items (valuation of receivables, accrual of Disproportionate Share Hospital (“DSH”) receivable, and other working capital items) and awarded our client prevailing party.
  • Provided expert report and testimony at arbitration on behalf of client in connection with the acquisition of a manufacturing facility. Dispute involved valuation of inventory including cost accounting issues and reserves for damaged, obsolete and excessive inventory. Matter settled favorably following testimony.
  • Served as consulting expert in multiple post-acquisition disputes regarding determination of working capital purchase price adjustments and claims under rep and warranty clauses of purchase agreements.
  • Assisted arbitrators in conducting accounting research, analyzing claims and drafting reports in numerous post-acquisition disputes.
Erik C. Lioy is associated with the following items:
On-Demand Web Briefing  On-Demand Web Briefing M&A Hot Topic: Avoiding Pitfalls in Working Capital Adjustments and Earnout Provisions - M&A Hot Topic: Avoiding Pitfalls in Working Capital Adjustments and Earnout Provisions, Wednesday, October 26, 2016
Transcripts  Transcripts M&A Hot Topic: Avoiding Pitfalls in Working Capital Adjustments and Earnout Provisions - M&A Hot Topic: Avoiding Pitfalls in Working Capital Adjustments and Earnout Provisions, Wednesday, October 26, 2016
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