Damages and Valuation
Damages & Valuation
CRA has provided expert testimony and critiqued opposing experts’ damages and valuation analyses in a wide range of matters involving antitrust, intellectual property, securities, solvency, property values, contracts, employment discrimination, product liability, environmental contamination, and purchase price disputes.
In antitrust matters, damages must be causally related to the conduct that results in the claimed injury to competition. Analysis of causation or antitrust injury is a critical component of the antitrust damages investigation. This, in turn, requires a deep understanding of markets and competition. CRA consultants have unparalleled expertise in antitrust analysis, and they employ this expertise in the damages as well as the liability portions of antitrust disputes.
Business and security valuation
CRA has the expertise needed to address disputes involving valuations of businesses, assets, or shares. Our business and security valuation experts have spent decades providing businesses and their legal counsel with expert testimony and advice during settlement negotiations or mediation. We apply accepted valuation methodologies and practical theoretical models to deliver independent valuations that are clear, compelling, and credible.
CRA’s valuation experience includes methodologies for valuing a variety of complex derivatives. We have extensive experience analyzing a variety of derivative instruments, including trading and investment in interest-rate swaps, swaptions, structured notes, foreign exchange, mortgage-backed securities, asset-backed securities, credit derivatives, futures, calls, puts, and exotic options. CRA has significant experience valuing “hard-to-value” assets including, but not limited to, illiquid securities, closely held companies, intellectual property, and special purpose entities.
In these matters, CRA’s teams:
- Provide consulting and expert testimony on matters involving business valuation and appraisals on entire companies, as well as their parts, including intellectual property and security valuation.
- Apply widely accepted valuation methodologies such as discounted cash flow, market multiple, and comparable transaction, including scenario analyses and simulations.
- Utilize practical theoretical models to value equity and debt securities, commodities, foreign exchange, and derivative instruments.
- Make appropriate adjustments for management projections, discounts or premiums, and non-operating assets.
- Analyze trading, investment, and risk management of individual securities and portfolios.
- Incorporate complex Monte Carlo simulation, real options, and derivative security valuation methodologies.
- Provide analyses on damages claims, insider trading, investor trading behavior, class certification, and loss causation.
Environmental claims can be made for alleged harm to human health, economic profitability, property value, habitat value, recreational and use values, or environmental aesthetics. CRA has considerable experience translating these claims into the objective, quantitative, monetary metrics that courts and regulators demand in order to determine appropriate awards for damages.
Our experts provide conceptually sound, defensible measures of the value of remedial actions. These techniques include a careful valuation of the actual damages incurred, or the changes to processes or remediation efforts that may be taken. They also include evaluation of “real options” that may represent valid actions taken by the party to achieve a superior compliance outcome, even if this activity is not conventionally measured with standard financial analytic techniques.
We are skilled in identifying and critiquing the benefit model (BEN model) used by the U.S. Environmental Protection Administration.
CRA applies a multidisciplinary approach to its analyses, including use of the following well-established techniques for assessing environmental liability:
- Statistics and econometrics
- Epidemiology and health effects
- Property value determination
- Hedonic pricing techniques
- Contingent valuation and surveys
- Financial analysis
- Cost-benefit analysis
Intellectual property valuation
In intellectual property matters, the patented technology often relates to a feature of a larger multifunctional product. CRA experts have used statistical analysis to isolate the market impact (in terms of price and quantity sold) of the infringer incorporating this feature into their product and to accurately project the but for sales of both the patentee and the infringer, absent the infringing feature.
CRA experts have deep experience with solvency analysis. CRA has provided expert testimony on a wide range of matters involving solvency, including fraudulent conveyance and bankruptcy.