Independent Analysis for a Stronger Commercial Agreement
An independent assessment of a commercial agreement and its proprietary revenue-allocation system provided counsel and senior executives with a clearer factual basis for renegotiation and identified opportunities to improve transparency, auditability, and governance.
The parties were preparing to renegotiate a commercial agreement governing the allocation of revenue generated by pooled film and television production equipment. Counsel sought an independent assessment of the existing contractual framework and the proprietary system used to implement it.
Because the methodology directly affected the economics between the parties, the assessment needed to address both the contractual requirements and how the system translated those requirements into financial outcomes. Key considerations included whether the methodology was applied consistently, whether calculations were transparent and traceable, and where ambiguity could create future commercial or operational risk.
The Hilco Global Investigations & Dispute Resolution practice assembled a multidisciplinary team spanning forensic accounting, data analysis, process assessment, and technical diligence.
Our team reviewed the existing agreement, technical documentation, and underlying data; observed system demonstrations and end-to-end process walkthroughs; and interviewed management and technical personnel. We also analyzed key variables, assumptions, parameters, and business rules and performed selected transaction-level procedures to assess whether calculations were traceable and repeatable.
The work connected the contractual framework, system functionality, and resulting economics, translating a complex allocation methodology into clear, decision-useful analysis for counsel and senior executives.
The independent assessment gave the parties a clearer factual basis for contract renegotiation. It explained how contractual terms were implemented within the proprietary system, why the methodology could produce materially different economic outcomes, and which calculations and assumptions were traceable and repeatable.
The work also identified opportunities to improve transparency and auditability, clarify assumptions and business rules, strengthen documentation and governance, and reduce ambiguity that could contribute to future disputes.
