MBAF is pleased to present the July/August 2017 issue of Litigation & Valuation Report as a way to help you keep abreast of business valuation and litigation support issues. The articles cover several topics we think you’ll want to know about.


Small Changes, Big Impact
The Growth Rate is an Important Part of Lost Profits Estimates

One of the more challenging aspects of calculating lost profits is determining the appropriate growth rate to apply during the damages period. This article explains how growth fits into the before-and-after method, as well as factors that experts use to support reliable growth rate assumptions.

R.F.M.A.S., Inc. v. So, 748 F. Supp. 2d 244, S.D.N.Y., 2010
Manpower Inc. v. Insurance Company of the State of Pennsylvania, No. 08C0085, E.D. Wis., September 20, 2010
Knox v. Taylor, 992 S.W.2d 40, Tex. App., 1999



Building a Fraud Case

When business owners suspect an employee is stealing assets or cooking the books, do-it-yourself fraud investigations can be perilous. It’s important for owners to work with an attorney and a forensic accounting specialist to ensure that the case is handled properly and evidence is preserved and admissible. This article discusses best practices in conducting interviews and gathering evidence, as well as ways company insiders can facilitate the investigative process.



How HIPAA Affects Lawyers and Their Experts

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) was designed to safeguard patients’ protected health information. This article covers the privacy and security rules under HIPAA, including ways lawyers and their expert witnesses can navigate those rules during the discovery process to avoid potentially significant civil and criminal penalties.



In re Marriage of Cheng
Recent Case Addresses Double-Dipping Debate

Depending on state law, the issue of “double dipping” may arise when one spouse owns a business and the court awards half of its value to the other spouse plus spousal maintenance based on future business income. This article discusses a case that makes a critical distinction between a business that’s a going concern and one that’s a “diminishing asset.”

In re Marriage of Cheng, Wash. App. No. 47937-1-II, November 22, 2016