Litigation Support & Expert Witness Services
Business valuation for litigation: expert analysis, deposition, and court testimony.
Litigation Valuation Services
Corporate Valuations Inc. is a nationwide business valuation firm. From our Portland office we prepare valuation opinions and expert-witness work for counsel across the United States.
When a case turns on what a closely held business is worth — or on what a wrongful act cost — the report has to survive the other side’s expert and the court’s reliability screen. Typical matters are shareholder and member disputes, partnership and LLC exits, fiduciary-duty claims, purchase-price and earnout fights, and commercial damages. Closely held interests in a marital estate are on our marital dissolution valuations page.
Principals Blake J. Runckel, ASA, CFA, and Cary M. Carruthers lead the work. Accredited appraisers since 1983. We are not the company’s auditor or tax preparer. Call 503-235-7777.
How counsel retains us
Say in the first call whether you need a consulting expert or a testifying expert. A consulting engagement may stay with counsel and is not written for the stand. A testifying engagement is written on the assumption that opposing counsel will read every sentence, sit us in deposition, and try a reliability challenge. Those are different letters. We will not treat a consulting draft as a disclosure-ready report after the fact.
Conflicts are checked before we open a file: the parties, the company, related entities, and any prior work for a shareholder or spouse. If we cannot be independent, we will say so.
The work product is a written opinion under the standard of value the case actually uses — fair market value, fair value under a state statute, or another standard counsel identifies. A buy-sell formula or last year’s estate appraisal is not that opinion unless the date, the interest, and the standard match.
If the other side has already served a report, rebuttal is a scoped engagement: identify the standard, the date, the interest, the approaches ignored, and the assumptions that do not match the record. Disagreement without a technical point is not rebuttal.
Engagement fees and expert-witness hourly rates are on the fees page. Call 503-235-7777.
Types of Cases We Support
Typical matters include shareholder disputes, economic damages, partnership and LLC exits, fiduciary-duty claims, and purchase-price disagreements. Closely held interests in a marital estate are covered on our marital dissolution valuations page.
Shareholder Disputes
Conflicts between majority and minority shareholders, disputes over fairness of buyouts, and oppressed shareholder claims all require clear valuation analysis. We value businesses at specific dates, analyze buyout offers for fairness, and establish the basis for equitable treatment of all shareholders.
Commercial Damages & Lost Profits
Breach of contract claims, wrongful termination, tortious interference, and other commercial torts often require quantification of damages. We analyze business operations, develop damage models, and calculate lost profits resulting from alleged wrongful conduct.
Partnership & LLC Disputes
When partners or members disagree about dissolution, buyouts, or forced exits, valuation is essential. We analyze partnership interests, address the treatment of capital contributions and earnings, and support fair division of partnership assets.
Breach of Fiduciary Duty
When officers, directors, or managers breach their fiduciary obligations, damages often hinge on business valuation. We calculate the value destroyed by breaches and support claims for harm to shareholders and owners.
Purchase Price Disputes
When buyer and seller disagree about valuation in acquisition disputes or earnout calculations, our analysis provides an independent perspective. We examine transaction documents, analyze seller representations, and address valuation methodology disagreements.
Our Litigation Approach
We approach litigation engagements with methodical attention to detail and clear communication. Our process begins with a comprehensive understanding of the case facts, the specific valuation questions at issue, and the relevant legal standards that apply. We then conduct thorough analysis using established valuation methodologies, carefully document all assumptions and conclusions, and prepare expert reports that clearly communicate our findings to the court.
Our experts maintain strict independence and objectivity. We analyze cases on the merits, applying consistent methodology regardless of which party retains us. This integrity and credibility are essential in litigation, where judges and juries assess not only the conclusions but also the competence and impartiality of the expert. We prepare our experts thoroughly for deposition and testimony, ensuring they can explain their analysis, defend their conclusions, and respond effectively to cross-examination.
We also understand the practical realities of litigation—timelines, budgets, and discovery demands. We work collaboratively with counsel to deliver work products that serve litigation strategy while maintaining the highest professional standards. Whether you need a detailed expert report for trial preparation, an initial valuation analysis to inform settlement discussions, or rebuttal analysis to challenge the opposing expert’s work, we tailor our approach to your needs.
Expert Reports & Testimony
We prepare comprehensive expert reports that meet all applicable Federal Rules of Civil Procedure and state discovery rules. Our reports include a clear statement of the valuation issues, detailed description of the business and industry, analysis of financial performance, discussion of valuation methodologies, and clear presentation of conclusions and their support. Reports are prepared with the understanding that they may be disclosed to opposing counsel and submitted to the court, so clarity, completeness, and professional presentation are essential.
Our experts provide depositions and trial testimony that clearly communicates valuation analysis to non-specialist audiences. Judges and juries need to understand not just what we concluded, but why our conclusions are reasonable and grounded in fact and professional standards. We prepare experts to present complex financial information in clear, accessible language, respond thoughtfully to challenging questions, and maintain credibility and composure under cross-examination. With decades of combined litigation experience, our team has the skills to be effective expert witnesses in any forum. For the testifying role, see our business valuation expert witness page.
Federal Rule of Evidence 702 (December 2023)
As of December 1, 2023, Federal Rule of Evidence 702 requires the proponent to demonstrate to the court, by a preponderance of the evidence, that:
- the expert’s scientific, technical, or other specialized knowledge will help the trier of fact;
- the testimony is based on sufficient facts or data;
- the testimony is the product of reliable principles and methods; and
- the expert’s opinion reflects a reliable application of those principles and methods to the facts of the case.
The 2023 committee notes emphasize that the court is a gatekeeper, not a jury-instruction afterthought, and that an opinion may not overstate what the method can support. We write testifying reports on that burden. State courts vary; some still speak in Frye “general acceptance” terms. Name the forum in the engagement letter.
Daubert reliability factors remain useful analysis. They are not a substitute for the amended rule’s preponderance showing and reliable-application-to-these-facts requirement. See our knowledge-base summary of Daubert v. Merrell Dow.
Rebuttal Analysis
Discuss Your Valuation Needs
Call 503-235-7777 or request a fee estimate online. We respond within 48 hours.
In many litigation cases, the opposing party will retain their own valuation expert. When that occurs, critical analysis of the opposing expert’s work becomes essential. We provide rebuttal analysis that examines the methodology, data, and conclusions of opposing valuations, identifies weaknesses or errors, and provides a professional critique grounded in valuation standards and best practices.
Effective rebuttal is not merely disagreement—it requires specific identification of technical errors, unsupported assumptions, departure from professional standards, or selective use of data. We prepare rebuttal reports that methodically address the opposing expert’s work point by point, strengthen your case, and provide material for effective cross-examination. Our rebuttal analyses have helped many clients successfully defend against weak opposing valuations and demonstrate the strength of their own position.
Damage Calculation Methodologies
Quantifying economic damages requires rigorous analysis and defensible methodologies that withstand judicial scrutiny. Corporate Valuations applies multiple approaches to litigation damages, selecting the most appropriate methodology based on case facts, available data, and applicable law. Our damage calculations address lost profits, diminution of business value, prejudgment interest, and present value adjustments required for courtroom presentation.
But-For Analysis
Establishes a hypothetical scenario of what would have occurred absent the wrongful conduct. We construct detailed financial projections comparing the actual business outcome against the but-for scenario, isolating damages attributable to the defendant’s actions.
Yardstick & Benchmark Methods
Relies on comparable company performance to measure damages. The yardstick method compares the damaged business against similar companies, while benchmark methods analyze industry performance metrics, growth rates, and profitability to quantify deviation from expected results.
Before-and-After Method
Compares the actual business performance in the damaged period against historical performance before the wrongful conduct. Particularly effective when the injured party has a consistent operating history that provides reliable baseline data.
Lost Profits vs. Diminution of Business Value
Lost profits represent the income stream that would have been earned absent the wrongful conduct. Diminution of business value measures the reduction in enterprise value, particularly relevant in circumstances involving permanent impairment or termination of business operations. Corporate Valuations calculates both measures, applying present value discounting and adjusting for the appropriate damage period and discount rate. We distinguish between temporary harm (recovered through lost profits) and permanent damage (reflected in enterprise value reduction).
Prejudgment Interest & Present Value Calculations
Economic damages must be adjusted to reflect the time value of money. We calculate prejudgment interest using statutory rates and applicable law, converting past damages to present value using the discount rate method or historical cost-of-funds approach. Complex calculations address multiple damage periods, varying interest rates by jurisdiction, and applicable compounding methodologies. Our present value discounting applies appropriate risk-adjusted rates that courts recognize for damages valuation.
Intellectual Property & Non-Compete Disputes
Intellectual property and non-compete disputes demand specialized valuation expertise to quantify proprietary asset loss and competitive harm. Corporate Valuations provides damages analysis for trade secret misappropriation, patent and trademark infringement, and non-compete breach litigation. Our methodologies calculate damages based on lost profits, market diversion, reasonable royalties, and diminution of intangible asset values.
Trade Secret Misappropriation Damages
Trade secret theft damages encompass lost profits from competitors using confidential information, lost business opportunities, diminished market position, and the cost to remediate competitive harm. We analyze the owner’s lost revenue and profit attributable to the misappropriation, the defendant’s unjust enrichment from using trade secrets, and the time required for legitimate competitive development. Our analysis addresses both actual damages and the ongoing nature of competitive harm from persistent trade secret use.
Patent & Trademark Infringement Valuations
Patent infringement damages require calculating lost profits for sales the patent holder would have made absent the infringement, or alternatively, the infringer’s profits attributable to the patent. Trademark infringement damages address lost sales, brand dilution, and consumer confusion costs. We apply the Panduit factors (demand, absence of acceptable alternatives, established price/profit margin, and causation) and Georgia-Pacific factors to determine reasonable royalty bases when lost profits analysis is unavailable.
Non-Compete Agreement Breach Damages
Non-compete breaches result in damages measured by lost customer relationships, diverted revenue, market share loss, and diminished goodwill value. We quantify the harm through customer analysis, revenue attribution, profit margin calculations, and competitive impact studies. Our analysis considers the extent of customer overlap, the enforceability timeframe and geographic scope, and the defendant’s ability to recapture the market position absent the breach.
Reasonable Royalty Calculations
When lost profits cannot be established, reasonable royalty provides the appropriate damages measure for IP infringement cases. We apply the Georgia-Pacific fifteen-factor framework to establish a hypothetical negotiated royalty rate that would have existed between willing licensor and licensee. Our analysis examines comparable licenses, the value of the protected technology, profit margins, design-around costs, and the extent of infringement in the marketplace.
Mediation, Arbitration & Settlement Support
Alternative dispute resolution processes increasingly rely on expert valuation analysis to facilitate settlement negotiations and support mediators, arbitrators, and negotiating counsel. Corporate Valuations provides damages analysis specifically tailored for mediation and arbitration contexts, helping parties understand realistic settlement ranges and develop informed negotiation strategies. Our expert economists communicate complex valuation conclusions in formats that advance settlement discussions.
Valuations Supporting Settlement Negotiations
Credible damage valuations encourage realistic settlement discussions by establishing anchor values that define reasonable settlement parameters. We prepare valuation reports specifically designed for settlement contexts, presenting both our damage conclusions and reasonable alternative methodologies that provide perspective on damages range. By identifying key valuation drivers and sensitivity assumptions, our analysis helps negotiating counsel understand which damage factors most significantly impact case value.
ADR Process Support
Corporate Valuations supports mediation and arbitration processes through expert presentations, written submissions, and real-time valuation analysis during settlement conferences. Our experts communicate with mediators regarding damages methodology and conclusion drivers, responding to questions about analysis assumptions and providing reasoned perspective on damages issues raised during negotiation. We prepare concise damages summaries and sensitivity analyses that clarify damages ranges without overwhelming settlement discussions.
Range-of-Value Analysis for Negotiation
Settlement success depends on parties understanding the realistic range of potential damages exposure. We develop range-of-value analyses that present damages under varying methodologies and reasonable assumption parameters. Our analysis identifies the defensible damages low-end and high-end values, explaining the assumptions driving each end of the range. This framework helps negotiators understand which party bears litigation risk if trial proceeds, informing settlement decision-making.
Federal & State Court Standards
Expert testimony standards vary significantly across federal and state jurisdictions, requiring specialized knowledge of applicable rules of evidence and procedural requirements. Corporate Valuations maintains current expertise in Daubert standards applicable in federal courts and Frye standards still applied in certain state jurisdictions. Our expert reports and testimony are structured to satisfy the admissibility requirements specific to each court, ensuring our valuation analysis receives full consideration by judges and juries.
Daubert vs. Frye Standards by Jurisdiction
Federal courts and most state courts apply the Daubert standard from Daubert v. Merrell Dow Pharmaceuticals, requiring trial judges to evaluate expert evidence for reliability, methodology, error rates, and applicability to the case facts. A smaller number of state jurisdictions, including California, Illinois, and New York, maintain the Frye “general acceptance” standard requiring expert methodology to be accepted by the relevant scientific or professional community. Corporate Valuations structures expert reports and testimony to satisfy either standard, demonstrating the established nature of valuation methodologies and their acceptance within the financial and business valuation professional community.
State-Specific Expert Witness Requirements
Individual states impose varying requirements for expert witness qualification, scope of testimony, and admissibility standards. Some states require experts to reside within the jurisdiction or certify local bar association standing; others specify expert testimony subjects that fall outside permissible opinion evidence. Corporate Valuations maintains jurisdiction-specific expertise, ensuring expert credentials and testimony structure comply with each state’s particular procedural rules and judicial precedent regarding expert evidence admissibility. We prepare experts for jurisdiction-specific foundation requirements and anticipated Daubert or Frye challenges to expert testimony.
FRCP Rule 26 Expert Report Requirements
Federal Rule of Civil Procedure 26(a)(2)(B) mandates expert reports containing: the expert’s opinions, facts and data underlying opinions, any exhibits supporting the expert’s testimony, a summary of opinions and bases, the expert’s qualifications including list of publications, the compensation arrangement, and identification of other cases where the expert testified. Federal courts strictly enforce Rule 26 requirements, excluding expert testimony for noncompliant reports. Corporate Valuations prepares comprehensive expert reports satisfying all Rule 26 elements, organizing damages analysis with clear methodology sections, detailed bases documentation, sensitivity analyses, and complete expert credentials. Our reports anticipate judicial requirements and position our experts for unimpeded trial testimony.
Litigation Valuation FAQs
What is a business valuation for litigation?
It is an independent appraisal prepared for a dispute — typically a shareholder fight, economic-damages claim, or other commercial case. The work product is a written opinion counsel can use in settlement, mediation, or court, not a marketing estimate.
What does an expert witness do in a valuation case?
A testifying expert explains the analysis, the standard of value, and the conclusion to the court, and is subject to deposition and cross-examination. That is a different role from a consulting expert who only advises counsel behind the scenes. See our business valuation expert witness page for the testifying role.
Do you testify at deposition and at trial?
Yes. When retained as a testifying expert, we prepare the report, sit for deposition, and testify at trial or in arbitration. The scope is set in the engagement letter so the work stays independent and usable under the applicable evidence rules.
How is a litigation appraisal different from a consulting-only valuation?
A consulting-only appraisal may stay privileged and is not designed for the stand. A litigation appraisal is written on the assumption that opposing counsel will read every sentence. We do not treat those as interchangeable engagements.
Strengthen Your Litigation Position
Whether you need expert valuation analysis, detailed expert reports, or rebuttal opinions, our experienced professionals can support your case with credible, well-reasoned analysis. Contact us to discuss your litigation valuation needs.