Forensic accounting & loss quantification
Business Valuation (Dispute & Damage Context)
Business valuation in dispute or damage contexts determines the value of an enterprise, equity interest, or economic asset for a defined purpose and standard of value. In litigation and insurance, valuations may support lost business value claims, buy-sell disagreements, or damages stemming from destruction of a going concern. A forensic valuation specialist documents assumptions, tests sensitivity, and explains why methods are appropriate under the facts.
When valuation intersects with loss quantification
Some matters require both lost profits over a window and a valuation of the business before and after an event. Others require only a valuation date opinion for transactional breach. We map the legal question to the correct standard of value (fair market value, fair value, investment value) and jurisdiction-specific guidance.
Methodology
We consider income, market, and asset approaches where applicable, document comparables selection, and reconcile indications of value. For insurance contexts, we align narrative with policy definitions of loss of business income versus loss of stock.
- DCF and capitalized cash flow models with terminal value documentation
- Guideline public company and transaction method screens
- Purchase price allocation and impairment testing when relevant
Outcomes
Deliverables include valuation memoranda, expert reports, and deposition support. We coordinate with corporate finance teams for data access and with counsel for privilege strategy.
Related services
Pairs with loss of profits quantification, expert witness testimony, and fraud investigation when earnings quality is challenged.
Related services
Frequently asked questions
What standard of value applies in a disputed business valuation?expand_more
It depends on the engagement: fair market value, fair value, investment value, or statutory standards may apply. We map the legal question and jurisdiction to the correct standard and document why methods chosen align with that standard.
When do I need both lost profits and a business valuation?expand_more
Some matters require income loss over a defined window plus an opinion on enterprise value before and after an event (for example, destruction of a going concern). Others require only one. We scope with counsel so the analysis matches the remedy sought.
What deliverables should we expect?expand_more
Common outputs include valuation memoranda, expert reports with exhibits, sensitivity tables, and deposition preparation. Data requests are staged so finance teams are not overwhelmed during quarter close.