Business Valuation - Damages
Damages are, in some cases, measured by the loss of business value resulting from a defendant’s wrongful actions. Financial Accounting Standards Board Opinion No. 141 provides a recognized methodology for the allocation of a business’ “Fair Value” among the business’ various identifiable tangible and intangible assets, and remainderment goodwill. The AICPA’s Statement on Standards for Valuation Services No. 1 provides a comprehensive methodology for the estimation of a business’ “Fair Market Value.”
We applied business valuation concepts to quantify the Fair Value of:
- Corporate assets and un-booked income tax benefits subject to a “Shareholders’ Separation Agreement.”
- An infringed trade name by reference to the defendant’s business records including its allocation of the purchase price it paid the at-issue trade name.
- The incremental value of customers lost as a result of the defendant’s improper competitive actions.
We applied business valuation concepts to quantify the Fair Market Value of:
- A closely held clothing distributorship in conjunction with gifting and estate planning.
- A business asserted to have been greatly impaired by the plaintiff’s wrongful actions.
- The effect of misrepresentations warranted as truthful on the value of an acquired business.
Also see - Lost Profits - Punitive Damages - Disgorgement Recoveries - Los of Use Damages
