Mediation is a process conducted confidentially that involves the parties in dispute nominating a neutral third party (a facilitator) to actively assist them in working towards a mutually beneficial arrangement (with a view to avoiding a trial). The parties are ultimately in control of the decision to settle and the terms of the resolution. The facilitator is not a decision-maker; he/she merely helps the parties to examine the problems.
Advantages
Disadvantages
The privacy afforded by mediation aligns with the parties' desire to avoid having to disclose confidential information. However, given that the dispute in question is complex, and has escalated to the point where the parties seem unable to maintain a cordial working relationship, there's a chance that the lack of an expert adjudicator and the informal nature of mediation would make it a less effective means of resolving the dispute.
Note that our M&A course explains the types of risks that can arise in relation to transactions, and the mechanisms lawyers can use to mitigate these risks.
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