A minority shareholder is suspicious of possible mismanagement by the company director. The company was a large metallurgical company. He wanted to obtain conclusive evidence about this situation.
According to our client, the company's purchases of raw materials continued at almost the same level as in the previous two years, while turnover had fallen by almost 40% in the last financial year. The company's administrator provided hardly any information on the company's activities, and the information she did provide was often very incomplete.
Through a rigorous investigation, Grupo Paradell was able to demonstrate that they had created a parallel company to which they were diverting clients and invoicing. The new company took advantage of the company's raw materials and machinery. In addition, orders for smaller amounts were not invoiced, so that significant income was generated in "B" which was obviously not declared.
With the evidence obtained by Grupo Paradell, we were able to help our client to negotiate an advantageous exit from the company with the sale of its shares.