Litigation: Critical Need for Financial Advisor


Litigation matters are almost always settled on economic analyses/positions. Too often, they fester and proceed based on emotional, usually irrational, behavior on the part of one or both litigants. We suggest that legal counsel on each side retain the best, most effective financial advisor(s) to continually monitor the case and identify the strengths and weaknesses in economic or monetary terms.

As valuation experts, we are often retained by either side for financial analytics and possible testimony. If we are to testify, our analysis must be objective and supportable in Court. We have also served in the capacity as an advocate, whereby we are precluded from "objective" testimony. As an advocate, we can provide the following advice:

  1. Find the weak links in the analysis/valuation by the opponent.
  2. Working with counsel, develop the most effective questions for examination and cross exam of the opposite side's experts.
  3. Provide meaningful financial answers to enhance the litigation strategy, such as loss of business value and economic damages.
  4. Mediate the dialogue between legal counsel and the client by assessing current factors to estimate the "value" of potential case outcomes.