LOP-01
Loss of Profits Quantification Expert Witness
The core service — independent expert quantification of commercial profit loss. Methodology selection (before-and-after, yardstick, DCF, incremental), loss period determination, revenue modelling, cost analysis, and mitigation assessment. Reports prepared to CPR Part 35, FRE Rule 702/Daubert, and international arbitration standards.
What This Covers
Scope of Analysis
- Counterfactual revenue and profit modelling
- Loss period determination and truncation analysis
- Gross and net profit margin analysis
- Mitigation assessment and residual loss calculation
- Reports compliant with CPR Part 35, FRE 702, and IBA Rules
When You Need This
Typical Instructions
- Commercial disputes requiring independent quantum evidence
- Pre-action assessments of profit loss exposure
- Settlement negotiations requiring defensible quantum figures
- Cross-examination preparation on financial methodology
Our ApproachReport Standards CPR Part 35 · FRE Rule 702 / Daubert · IBA Rules Engagement Type Single party · SJE · Tribunal-appointed · Advisory Forums High Court · Commercial Court · ICC · LCIA · SIAC · ICSID · US Federal
Methodology & Delivery
“Every engagement begins with methodology selection grounded in the available financial data and the nature of the alleged loss. We disclose assumptions, source data, and modelling choices so the analysis withstands cross-examination.”
Related Services
Common Questions
- What is the before and after method for loss of profits?
- The before and after method (also called the before and after approach) is a loss of profits quantification methodology that compares the financial performance of a business before the event that caused the loss with its performance after the event. The difference in revenue or profit — adjusted for non-event factors — represents the loss. It is most commonly used where the claimant has a reliable pre-event trading history.
- What is the yardstick method for loss of profits?
- The yardstick method (also called the comparable business method) quantifies loss of profits by reference to the financial performance of a comparable business — one that was not affected by the event that caused the claimant's loss. It is particularly useful where the claimant is a new business without an established trading history, or where pre-event records are unavailable or unreliable.
- How is business interruption loss of gross profit calculated?
- Business interruption loss of gross profit is calculated using the gross profit rate — the ratio of gross profit to turnover in the period before the interruption — applied to the shortfall in turnover during the period of indemnity. The gross profit rate is derived from the business's historical financial statements. Increased costs of working incurred to mitigate the loss are added, subject to the policy's provisions.
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