Lost Profits

Matson, Driscoll & Damico’s team of forensic accountants have extensive experience in measuring lost profits associated with civil litigation and liability matters.

Reasons for reduced revenues and lost profits can result from machinery breakdown, fires, explosions, natural disasters, third-party negligence, contractual disputes, lost-market share, or even changes in the economy.

Whatever the reason, unforeseen circumstances can result in a loss of immediate revenues, the company’s future profitability, or even its ability to continue as a going concern.

We have participated in a number of high-profile cases on a global level, and are committed to providing an accurate and objective analysis of lost profits claims for all types of businesses.   

Our experts deliver a wide range of services to determine the amount of fair and reasonable damages that may have been suffered, including:

• Perform a detailed review of the company’s operational and financial records
• Interview key management, staff, suppliers and customers as appropriate
• Analyze industry data to estimate the real effect on profit relating to the interruption in business and market share
• Compare projected performance to the company’s actual performance during the period of interruption
• Consider non-loss related events and conditions that may impact actual sales during the recovery period
• Calculate the damages solely attributable to the incident

MD&D also helps identify instances where the business could have mitigated losses by purchasing from alternative sources or out-sourcing certain services, among other actions.

In addition to providing our clients with regular updates, we also prepare schedules, reports and graphics that present our results and recommendations.