Why The Valuation Group

Lost profits claims turn on the quality of the financial evidence. Revenue history, avoided costs, capacity, market conditions, causation, mitigation, customer behavior, pricing, margins, and company-specific risk all affect the reliability of the damages conclusion.

Our work tests the claimed loss against the company’s records, operating history, market evidence, and the economic assumptions required to measure what would likely have occurred but for the alleged event.

Lost Revenue and Lost Margin Analysis

We analyze historical revenue, projected revenue, gross margins, operating expenses, avoided costs, incremental costs, customer trends, seasonality, industry conditions, and other factors affecting the claimed loss.

Our work focuses on the economic difference between the alleged “but-for” scenario and the actual financial results, with attention to whether the claim is supported by the company’s records and market evidence.

Causation, Mitigation, and Supportability

A lost profits conclusion must be tied to the facts of the matter. We evaluate whether the claimed loss is connected to the alleged conduct, whether other factors may have affected performance, and whether the claimant’s assumptions are consistent with the financial evidence.

Where applicable, we also analyze mitigation, replacement revenue, delayed revenue, substitute business, capacity constraints, and the duration of the claimed loss period.

Lost Profits in Business and Contract Disputes

We provide lost profits analysis in matters involving breach of contract, failed transactions, franchise disputes, supplier or customer disputes, distribution agreements, business interruption, professional practice disputes, and other commercial matters.

Our reports are prepared to assist counsel and advisory teams in evaluating the amount claimed, the assumptions used, and the financial support for the alleged loss.

Review of Opposing Lost Profits Claims

In many disputes, the most important question is whether the opposing damages model is reliable.

We review lost profits calculations, revenue projections, margin assumptions, avoided cost treatment, growth rates, causation analysis, mitigation assumptions, discounting, and supporting schedules. Our work helps counsel identify unsupported assumptions, methodological weaknesses, and areas requiring rebuttal or further discovery.

Related Valuation Issues

Business Interruption & Insurance Claims Analysis

Lost profits analysis often overlaps with business interruption, lost income, extra expense, and insurance-related economic loss matters.

Breach
of Contract Damages

Contract disputes may involve lost profits, unpaid amounts, increased costs, reliance damages, mitigation, and other measurable financial effects.

Lost Business
Value

Some matters involve not only lost income, but impairment or destruction of business value.

Rebuttal & Review of Opposing Expert Reports

Lost profits claims often require review of the opposing expert’s assumptions, models, schedules, and damages conclusions.

Built for Dispute Resolution

Our lost profits analyses are built for negotiation, mediation, arbitration, litigation, and expert review. We focus on the financial evidence, the assumptions behind the claim, and the economic reasoning supporting the conclusion. When lost profits are alleged, The Valuation Group provides the financial analysis needed to measure, test, and support the damages conclusion.

LET'S TALK

Looking for Clear, Defensible Financial Analysis?

Connect with our professionals to discuss your valuation, forensic, or advisory needs and determine the right solution for your engagement.

LET'S TALK

Looking for Clear, Defensible Financial Analysis?

Connect with our professionals to discuss your valuation, forensic, or advisory needs and determine the right solution for your engagement.