Economic Damages & Lost Profits Valuation
When disputes arise—be it breach of contract, tort, business interruption, or other commercial claims—correctly quantifying economic damages and lost profits is crucial. Such valuations must be legally defensible, analytically sound, and grounded in reliable data.
Synpact Consulting delivers specialized Economic Damages & Lost Profits Valuation services, assisting clients, attorneys, and expert witnesses with precise, transparent, and supportable analyses.
We draw from financial modeling, forensic accounting, industry benchmarks, and scenario testing to determine damages, business interruption losses, and future profit impacts.
Why Choose Synpact for Economic Damages Valuation
- Forensic & Valuation Expertise: Skilled team combining valuation specialists and forensic accounting background.
- Legal & Tribunal Readiness: Reports structured to support litigation, arbitration, and dispute resolution.
- Robust Methodologies: Use of multiple valuation approaches (before‑and‑after, yardstick, discounted cash flows).
- Transparent Assumptions: All assumptions, adjustments, and deviations clearly documented.
- Peer Benchmarking & Sensitivity: Use external comparables and sensitivity testing to strengthen conclusions.
- Timely & Responsive: Capability to deliver under tight case timelines.
- Credibility & Defensibility: Workpapers, audit‑quality schedules, and expert support for cross‑examination.
Our Economic Damages & Lost Profits Valuation Services
Breach of Contract Claims / Lost Profits
Quantification of profits lost due to contractual breach, cancellation, or underperformance.
Before‑and‑after scenario construction, causation linkage, and mitigation adjustments.
Business Interruption / Revenue Losses
Modeling lost revenue during interruption periods (e.g. disaster, fire, supply chain disruption).
Adjustment for fixed costs, variable margins, and recovery ramps.
Tort / Intellectual Property Damages
Valuation of lost profits from infringement, misappropriation, competition, or unfair practices.
Royalty / license backstop method and differential profits approach.
Incremental Costs / Avoided Costs Analysis
Identification of incremental costs incurred or avoided due to the event.
Net damages analysis (incremental benefit — incremental cost).
Forensic & Sensitivity Analysis
Scenario and sensitivity testing around key drivers: growth rates, margins, discount rates.
Cross-checks with benchmarks, industry data, and alternate projection paths.
Process & Workflow
- Case Scoping & Kick‑off – Understand transaction or dispute context, legal claims, timeline, and data availability.
- Data Collection & Review – Gather financial statements, budgets, contracts, market data, prior performance, industry benchmarks.
- Model Development – Build comparative (before‑after) and discounted cash flow models, adjusting for mitigation, causation, and counterfactuals.
- Damage Quantification – Determine lost profits, business interruption, incremental costs, and net damages.
- Report & Expert Support – Deliver detailed valuation report, supporting workpapers, sensitivity analyses, and expert testimony readiness.
Industries & Use Cases
Industries Served:
- Manufacturing & Industrials
- Technology & Software
- Healthcare & Pharmaceuticals
- Consumer Goods & Retail
- Infrastructure & Energy
- Services & Hospitality
Use Cases:
- Breach of contract litigation and dispute resolution
- Business interruption claims (natural disaster, fire, supply chain shocks)
- IP infringement damages and licensing disputes
- Antitrust, competition, and unfair trade practice claims
- Shareholder dispute, exit disputes, and breach of fiduciary duty cases
Frequently Asked Questions (FAQs)
Q: How do you establish causation in lost profits cases?
A: We construct a counterfactual “but‑for” scenario, assess incremental impacts, and ensure causal linkage to the claimed event.
Q: Do you consider mitigation or alternative measures?
A: Yes — we assess what the claimant reasonably could have done to reduce losses, and adjust estimates accordingly.
Q: Which valuation methods do you use?
A: We use methods like before‑and‑after, yardstick (benchmark), discounted cash flow, and market comparables to triangulate a defensible result.
Q: How long does an economic damage valuation take?
A: Depending on case complexity and data availability, typical engagements run from 10 to 20 business days (or faster under urgent deadlines).
Q: What deliverables are included?
A: Full valuation report, financial models, workpapers, sensitivity analysis, benchmarking support, and deposition / tribunal support materials.
Call to Action
Facing litigation, damage claims, or needing an independent expert in lost profits or economic damages? Let Synpact Consulting provide rigorous, defensible, litigation‑grade valuation support.
Contact: info@synpactconsulting.com to discuss your case or request a sample damages analysis.