Valuation & Damages

A key issue in many disputes is the quantification of the alleged loss suffered by a claimant, and the clear communication of that loss calculation to the court or arbitral panel. Many of the world’s top law firms and organizations engage FTI Consulting for such valuation and damages expertise. With offices and practitioners in every key market worldwide, our local knowledge complements our global perspective and capabilities, providing comprehensive valuation and damages expertise. Our valuation and damages expertise supports your litigation no matter your industry or global location. Our senior damages team is the largest group of testifying experts in the world, highly competent in giving direct evidence and under cross-examination before courts, tribunals and international arbitration proceedings. Clients engage us because of our relevant industry experience, our work on similar types of disputes, our geographic experience and proximity, and our ability to work and deliver in a variety of languages. Team members are either native speakers or fluent in over 30 languages. We’re a collaborative team of experienced accountants and business valuators (many of whom have worked at Big Four firms), economists, MBAs, econometricians, PhDs, former investment analysts and industry specialists. Our professionals have performed decades of damages-related work. We deliver leading presentations, reports and analyses, and advisory on all aspects of the disputes process. When you partner with us, you draw on the collective power of the greater FTI Consulting team. As we are a collegial organization, you have access to our wider experience and expertise when faced with issues that are novel or complex. Clients frequently rely on us to handle damages-related matters across topics that are statistical and economic, valuation-specific or actuarial-specific.

Modern litigation often involves enormous amounts of data and requires sophisticated statistical analyses to develop and support expert testimony. At the same time, the data sciences landscape is continually evolving, with ever-changing database and computing platforms creating an abundance of tools and solutions. Our experts are experienced in the complex data and statistical issues inherent in modern litigation and business analytics. We are aware that complex data analysis is only meaningful or helpful to others when they can fully understand the results. To ensure greater understanding of our results among decision makers, we also employ data visualizations or infographics.

Engage us for our expertise across a wide range of situations:

• Group restructuring and fiscal valuations
• Contractual disputes
• Transactions and disputes between shareholders
• Post-acquisition disputes
• Expropriation claims
• Matrimonial disputes
• Regulatory and accounting valuations
• Investor relations and fundraising
• Financial products disputes
• Intellectual property disputes

With years of industry experience, we help:

• Determine if a claim is worth pursuing
• Identify the correct methodologies for quantifying damages
• Evaluate claims in the context of past and future economic loss
• Specify the type of expertise, evidence and documentation required

Organizations often need an independent valuation of financial instruments across asset classes in special situations, including financial reporting, risk advisory, transactions, financial due diligence, restructurings, liquidations, disputes, litigation, arbitration, and internal and regulatory investigations. Our clients engage FTI Consulting for our established track record of providing expertise-led and technology-enabled solutions backed by deep industry experience and academic rigor. The combination of quantitative and trading expertise across asset classes and reliance on proprietary methodologies and technology enables us to provide transparent, reliable and objective valuations. We can value financial instruments from simple and liquid to complex and illiquid.

Clients are increasingly facing quantitative challenges that require robust data analytics and computationally efficient models. Our team of trading valuation and risk management experts has years of experience building proprietary valuation, trading and risk analytics technologies that span every asset class and geographic location. We support clients with advanced modeling capabilities across multiple asset classes and large datasets, and in computationally demanding matters that require multiprocessing technologies. We’re renowned for applying industry knowledge, intellectual capital and proprietary technology to produce high-quality, independent valuations and tailored risk-management analytics.

Our firm’s proprietary portfolio valuation and risk management system, Quantum, provides the flexibility, computation efficiency and performance to assist clients in situations where time and accuracy are of essence. It is an institutional-grade system designed to follow best practices in analytics and risk management, such as those used by the most sophisticated broker-dealers and hedge funds. Quantum delivers advanced financial modeling and proprietary analytics for financial instruments, including structured products and complex derivatives. It can be tailored to provide dynamic modeling and evolutive solutions adapted to clients’ needs as new developments and challenges arise. It can also accommodate bespoke portfolios of financial instruments and trading/hedging portfolios, and offers customized analytics and reporting, complex scenario modeling and stress testing. And it is supported by a rigorous and advanced architecture which offers scalable and highly evolutive capabilities to serve our clients. Quantum is our most advanced and integrated valuation and risk management system. However, our experts can also deploy simpler, alternative valuation and risk management solutions whenever best suited for a particular client need. No matter the solution deployed, clients benefit from our comprehensive valuation services and stress-testing frameworks, which include comprehensive scenario analyses and advanced risk reporting across asset classes.

Organizations and law firms that deal with product liability claims often seek the support of trusted, seasoned experts with experience in class action and class certification, accounting, damages and valuation, and deep expertise in the industries involved. The senior experts of FTI Consulting help organizations and external counsel address the challenges of large and complex claims by conducting investigations and determining causes; assessing damage and liability and performing valuations of losses, business interruption, remediation and recovery; and providing clear and concise expert testimony. Clients engage our global team of advisors when they need help understanding financial and operational liabilities and applying advanced analytics to help achieve financial objectives. They also call on us to conduct claims evaluations, technical reviews and portfolio analyses in support of run-off programs, risk assessment, and damage and valuation. Transaction lawyers and litigators dealing with transaction liability matters rely on our experts to provide dispute advisory services. Private equity firms involved in large deals also seek these services. With decades of experience, our integrated multidisciplinary team is highly equipped to assess the value of misrepresentations. If misrepresentation claims are of a financial nature, we involve our accounting and valuation experts, many of whom have previously worked for Big Four firms, to investigate, analyze and testify. When misrepresentations occur, we also provide valuation and damages calculations. Our professionals include the top arbitrators in the marketplace who frequently serve as neutrals in the resolution of disputes that are not brought to court.

Our teams of experts use secure computing facilities that allow us to manage, maintain, update and query large private and highly confidential datasets to support management’s regulatory decisions. Clients and their counsel rely on us to assemble large datasets from disparate sources and discordant formats. These cutting-edge resources and our expertise ensure data integrity over potentially lengthy litigation, regulatory, or investigation projects. We regularly analyze datasets containing hundreds of millions and even billions of records. Our expert staff and state-of-the-art secure computing facilities efficiently and swiftly handle computations on these large datasets, which are required for expert testimony in litigation cases or regulatory and internal investigations.

Our professionals work closely with general counsel members of major insurance companies and their outside counsel on complex damages calculations for purposes of settlement negotiations and expert testimony. Results of our advanced statistical methods have led to the discovery of previously unseen risks that were not captured in classical regression analysis.

Organizations face formidable challenges throughout the life cycle of major transactions, including forecast and valuation support, assessment and commercial due diligence efforts, transaction structuring and analysis of strategic alternatives, and ongoing post-transaction needs. Combining industry and technical expertise with market insights and transaction experience, FTI Consulting valuation experts have a proven track record of delivering sophisticated and actionable advice to clients. Management teams, boards of directors, capital markets and investors trust our objective and credible valuation opinions and advice when making strategic decisions and executing transactions.

Strategic advisory and transaction support: We provide our clients with the highest level of analytic excellence, insight and defensibility. Our services are used across a variety of transactions, including capital-raising support, buy- or sell-side M&A efforts and distressed matters.

Bank collateral valuation opinions: Lenders need the confidence to make informed lending and collateral decisions. Our valuation experts provide in-depth insight into the value of assets and businesses, including distressed situations where restructuring support may be required.

Fairness and solvency opinions: Boards of directors and special committees often need assistance with decision making, fulfilling fiduciary responsibilities and mitigating risk in executing a transaction. They engage us to render opinions and support regarding fairness and solvency issues.

Portfolio valuation: Private equity firms, hedge funds and other investment managers are often required to value illiquid assets. They turn to our experts for an independent valuation, including valuations to meet financial reporting requirements under applicable fair value standards.

Intellectual property and intangible asset valuation opinions: Organizations may face intellectual property challenges across a multitude of situations, including collateral administration, M&A efforts, financial reporting, gift and estate tax reporting, transfer pricing, litigation and distressed situations. Combining our technical and industry expertise, we routinely develop valuation opinions for intangible assets, such as intellectual property.

Financial reporting and tax opinions: We are well versed in delivering valuations to support financial reporting and tax requirements, including: fresh-start accounting; purchase price allocation; goodwill and intangible asset impairment; equity incentive compensation; estate and gift tax opinions; tax consolidation; tax cost basis setting; and executive options.

Dispute and litigation support and services: Attorneys and litigants often require expert testimony, damages valuation and analysis, court-ready reports and opinions, and reviewing opposing/corroborating expert reports. We successfully combine industry, technical and testimonial expertise for the benefit of our clients facing these situations.