Diminution in Business Value vs Lost Profits: Which Model Fits Your Case?
Quick Answer Diminution in business value measures permanent reduction in the company’s fair market value caused by a wrongful act, calculated as: pre-event value minus
How Lost Profits Are Calculated in Business Interruption and Contract Disputes
Quick Answer Lost profits in business interruption and contract disputes are calculated by reconstructing but-for revenue (what the business would have earned absent the wrongful
Lost Profits, Diminished Value, and Extra Costs: Economic Damage Models Explained
Quick Answer Three primary economic damage models are: (1) lost profits, measuring profit that would have been earned during a finite damages period; (2) diminished
Economic Damage Calculation Services for Commercial Litigation
Quick Answer Economic damage calculation services for commercial litigation include lost profits modeling (before-and-after, yardstick, market share methodologies), business interruption claims, contract breach damages, lost
Coordinating Business Valuation with Forensic Accounting in Complex Cases
Quick Answer Coordinating business valuation with forensic accounting in complex cases combines two disciplines on one engagement team. The forensic CPA reconstructs the true financial
Business Valuation in Shareholder Oppression and Freeze-Out Cases
Quick Answer Business valuation in shareholder oppression and freeze-out cases requires fair value (not fair market value) analysis under Florida case law. Fair value typically
How Forecasts and Projections Influence Business Valuation in Disputes
Quick Answer Forecasts and projections heavily influence business valuation in disputes because the income approach (discounted cash flow or capitalization of earnings) relies on projected
Common Errors in Business Valuation That Can Damage a Case
Quick Answer Common errors that can damage a business valuation case include: (1) failing to normalize owner compensation against industry benchmarks, (2) using management-prepared financials
Business Valuation in Divorce: How Ownership Is Measured and Divided
Quick Answer In Florida divorce, business interests are valued as marital assets when the business was acquired or grew during the marriage. The forensic CPA
Digital Payments, Cash Apps, and Hidden Transfers: Modern Forensic Accounting Techniques
Quick Answer Modern forensic accounting addresses how digital payment systems (Venmo, Cash App, Zelle, PayPal, cryptocurrency wallets) are used to hide assets or income. Standard
Business Valuation for Transaction Planning and Negotiation Support
Quick Answer Business valuation for transaction planning and negotiation support provides defensible value figures before listing, before negotiating, and before closing. The forensic CPA applies
Cost vs Benefit: When Forensic Accounting Makes Financial Sense in Litigation
Quick Answer Cost vs benefit analysis of forensic accounting in litigation: the cost of a forensic accountant is engagement-scoped and depends on the complexity of