Business Valuation Cases
Examples of Complex Cases in which experts at Litigation Economics have provided analyses and testimony include the following:
Empire Ethanol and Energy, LLC vs. BBI International, Inc. et al. Damages in this case consisted mainly of the business value of a dry-mill ethanol production plant which would have been built in Albany, New York but-for the actions of the defendants who allegedly breached a contract to provide services that arguably would have resulted in an operational and successful ethanol plant. Analysis included a calculation of business value using an income approach and pro-forma financial statements developed by defendants. Engaged by plaintiff counsel, Dwight Kanyuck, Knauf Shaw, Rochester, New York.
ICICI INFOTECH, INC. vs. Four Seasons Software, LLC. American Arbitration Association case. Analysis consisted of assessing the business value of a new business that planned to sell an enterprise software application to small and medium sized retail companies. A key element in their ability to successfully launch their product was delivery of the underlying, Windows-based software by software development company from India. Disputes arose about ownership of intellectual property, due dates, costs, and specifications with the result the market opportunity was missed and Four Seasons ceased operations. Retained by Michael McCormick, counsel for Defendant, Tyler Cooper & Alcorn, Hartford, Connecticut.
An executive in a large chain store company had an affair with a woman who sold products to the chain stores. When the woman sought to end the extramarital relationship, the man engaged in a series of adverse actions that drove the supplier firm out of business. Litigation Economics provided a business valuation assessment of the supplier firm including economic trends, industry and competitor issues, and measured business value using an income method with risk appropriate cost of capital. Retained by plaintiff counsel, Gerald Emanuel, Hinkle, Jachimowicz, Pointer & Mayron, San Jose, California.
A large and complex case involving two IT companies competing with related products and services in Mexico and the U.S. Services provided included a December 2013 deposition testimony and two related reports: one, a rebuttal report or critique of plaintiff’s claim of lost profits and lost business value and, second, a separate and independent analysis of possible business damages, including lost profits and lost business value. Assessments included consideration of future market developments, risk adjusted cost of capital, and comparison of target company operations with others in similar industry. Work done for defense counsel, Michael Halvorson, of Jones Skelton & Hochuli, Phoenix, Arizona.