When the future of your company hangs in the balance you don’t want to calculate wrong. At HSNO our experienced accountants want to see your company thrive. When it comes to measuring lost profits we have extensive industry experience with civil litigation and liability matters. We prepare thorough analyses that explain reasons for reduced revenue. Lost profits usually accompany economic damages in a litigation setting. However, our reports are reliable documents that you can submit as expert witness testimony.
There are so many different scenarios that can bring about reduced revenue. Machinery can breakdown, natural disasters take place, management turnovers take place, and terrible contractual disputes happen. We also know that drastic changes in the economy can affect the marketplace as well.
We work with you to make sure you are able to understand all aspects of our comprehensive reports. Our objective is to determine the amount of fair and reasonable damages that you have incurred. At HSNO we perform a complete evaluation of a company’s corporation and financial data. We interview executive management and review documents from suppliers and customers when applicable. One of our specialties is performing a damage analysis to estimate the amount of detriment suffered by the plaintiff. Once we have what we need, HSNO accountants calculate lost “net” profits by estimating the gross revenue that would have been earned if a wrongful act had never occurred. When we do that we can also project performance and correlate that to the productivity before the period of interruption.
Lost profits can only be claimed over the loss period, but HSNO will also help you recognize when your company could have alleviated losses by choosing other alternatives such as purchasing from a different source or making sure there was an interoffice accountability system.