Valuation of economic loss – estimate the amount of the loss incurred
What does the valuation of economic loss involve?
The valuation of economic loss involves determining the economic value of losses incurred by a business as a result of the actions of third parties, breach of contract, unlawful conduct by a counterparty or unfair competition. The valuation may cover both actual loss and loss of profit (lucrum cessans).
This service is used, among other things, in court and arbitration proceedings, compensation negotiations and out-of-court settlements.
When might a valuation of loss be needed?
- breach of the terms of a commercial contract,
- delays or non-performance of a contract by a counterparty,
- suspension of production or disruption to operational activities,
- unfair competition or breach of a non-competition clause,
- acquisition of a key customer or know-how,
- fortuitous events caused by a third party (e.g. infrastructure damage),
- court proceedings concerning damages or civil claims.
Who does the valuation of economic loss apply to?
- companies affected by the actions of a counterparty or competitor,
- businesses preparing for litigation or settlement,
- law firms representing parties in commercial disputes,
- insolvency practitioners, administrators, attorneys and restructuring advisers,
- insurance companies and their clients as partiesparties to claims.
How can we help?
- we carry out a financial and operational analysis of the circumstances of the event,
- we estimate the amount of actual loss and lost profits,
- we prepare a professional report that can serve as evidence in the case,
- we consult and support law firms in the field of economic expertise,
- we work with court-appointed experts, legal advisers and tax advisers.
Why should you entrust us with preparing opinions for courts and arbitrators?
We specialise in the professional preparation of financial opinions and expert reports for use in court and arbitration proceedings. We combine expertise in finance, management accounting and commercial law to deliver reports that are reliable, clear and admissible as evidence.
- Combining expertise in finance, management accounting and commercial law – ensures a comprehensive and consistent analysis
- Experience in preparing expert opinions for courts and arbitrators – reports prepared in accordance with evidential requirements and legal procedures
- Clear and transparent reports – based on facts, data and analysis, understandable to the parties involved
- Understanding of business realities – we can translate complex processes and financial data into the language of numbers
- Confidentiality, independence and timeliness – every opinion is prepared in accordance with the highest ethical and procedural standards
Thanks to our experience, our opinions for courts and arbitrators become a reliable tool supporting procedural and strategic decisions.
Benefits of a professional valuation of economic loss
- reliable assessment of loss – based not only on estimates, but on data,
- a stronger negotiating or litigation position,
- a transparent document that can be used as evidence in the case,
- professional substantive support for lawyers and managers,
- saving time and resources – we handle the entire analytical process.
Our experience
- valuations of contractual and commercial losses for companies across various sectors,
- reports in cases concerning breaches of non-competition and loyalty clauses,
- opinions supporting law firms in civil and commercial disputes,
- estimates of losses arising from production stoppages or the termination of key contracts,
- economic analyses used as appendices to statements of claim and pleadings.
FAQ
What is the difference between actual loss and lost profits?
Actual loss is a real diminution in assets (e.g. destruction of property), while lost profits are profits that were not achieved as a result of the event.
Can a report prepared by MDDP be used as evidence in court?
Yes – we prepare reports that can be submitted as documentation in proceedings or as part of an expert opinion.
Is financial data required?
Yes – the more comprehensive the documentation (revenue, costs, forecasts), the more precise the valuation.
How long does it take to prepare the report?
Between 7 and 21 days – depending on the scope of the case and the available data.
Do you also assist lawyers?
Yes – we work closely with law firms, supporting them in analysing evidence and preparing statements of claim.