Litigation can strike at the heart of a business, impacting on its finances, reputation, resources, morale and long-term growth.
It's nothing new to state the potentially costly distraction that a dispute can have on a company. But the detail of most commercial litigation is largely shrouded in secrecy with the parties involved keen to manage it in a low profile and efficient manner.
So, where disputes are disclosed, what can we learn about the nature of litigation and the impact it can have on a business and its share price? And what are the notable trends that could influence future business strategy?
In our new report, TAKING AIM: How litigation can strike company value, we share findings from a landmark study of disputes involving both AIM and Standard listed companies since 2008. The research has been carried out in partnership with Scott Evans of the London Business School and is, to the best of our knowledge, a first of its kind.
A comprehensive study, it involved searching all regulatory news service announcements over a 14-year period to create an extensive database of legal disputes involving listed companies. Within that data, we found more than 300 companies had disclosed involvement in one or more litigation events during the timeframe.
Our report will share with you:
- How litigation impacts on company share price
- What type of dispute your business is most likely to face
- How long a 'fight' typically lasts
- Which sectors are the most likely to face a dispute
- Whether claimants or defendants have the upper hand
- How to mitigate the risks of litigation and choose the right course of action
We believe the report's findings will be instructive in helping to shape a structured and considered approach to managing potential disputes and maintaining effective commercial relationships.
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