Given ValueScope’s extensive oil, natural gas, and power experience across several critical disciplines, we provide expert consulting and testifying services in support of complex commercial litigation. In particular, we are very effective when commodities, energy, M&A, derivative instruments, financial analysis, investment returns, and valuations are critical components of the matter. We differentiate ourselves this way:
- We aren’t just generalists – we uniquely understand the industry and have more than 50 years of combined experience in it.
- We are an industry leader in providing valuation and transaction services across the energy complex.
- Our valuation experts hold many prestigious professional credentials, including CFA, CPA, CQF, FRM, MBA, and CEIV designations.
- Only our most senior professionals lead and manage dispute/litigation engagements.
Our services include:
- Expert Testimony
- Expert Consulting
- Bankruptcy & Reorganization
- Litigation Risk Analysis
- Settlement Analysis
- Preparation of Demonstratives
- Valuation and Damage Theory Formulation
- Valuations of Business Interests, Tangible and Intangible Assets and Liabilities
- Post-acquisition Disputes
- Partner/Shareholder/Management Company Disputes
- IRS and Tax Court Disputes
IRS and Tax Court Disputes
Our experts have extensive experience in tax litigation support, from estate and gift valuation disputes to complex federal income tax matters. We have provided analysis and testimony in U.S. Tax Court and federal district courts for plaintiffs as well as defendants for over three decades. We have successfully defended analyses related to estate and gift, transfer pricing, reasonable compensation, transfer of liability, characterization of debt, and tax shelters.
Our brand of niche expertise will help you win your case.
Valuation and Damage Theory Formulation
Due to our valuation skills, we were among the first firms to work on damages cases. Damages often result from the difference between two value measurements. Properly estimating value in the energy industry requires intimate knowledge of the value drivers. That is why attorneys have come to see us as ideal experts. We have performed thousands of analyses for almost every imaginable purpose. From complex commercial litigation to estate and family matters. We bring a wealth of ideas and insights to a structured damages model.
Lost profits are typically claimed as an element of economic damages in a litigation setting.
Damage analyses are prepared to provide an estimate of the detriment suffered by the plaintiff as a result of a wrongful act of the defendant. In order to prove damages, the plaintiff must show that:
- The wrongful act of the defendant caused a loss; and
- The amount of the loss can be estimated with reasonable certainty.
In addition, for contract claims, the plaintiff must show that the loss incurred was foreseeable at the time the contract was entered into by the parties. Only lost “net” profits are allowed as damages. Lost “net” profit is computed, in general, by estimating the gross revenue that would have been earned but for the wrongful act reduced by avoided costs. Avoided costs are defined as those incremental costs that were not incurred because of the loss of the revenue. After the net lost profits are determined, any actual profits earned are deducted to compute the damages.
Lost profits can only be claimed over the loss period. This period normally begins no earlier than the date of the wrongful act; however, the date the loss begins may be subsequent to that date. The end of the loss period can vary. In a contract breach, the loss will be computed through the earlier of the return of the business to customary levels or the end of the term of the contract (which, in some cases, may include renewal periods). In other situations, such as tort claims or franchise contracts, the term may extend to the return to customary levels or the end of a “foreseeable” period.
Bankruptcy & Reorganization
ValueScope provides sophisticated analysis for bankruptcy, insolvency, and reorganization situations in the energy space. Our experience, resources, and technical industry expertise mean you and your team will have admissible financial analysis. We can also offer critical insight to help protect and enhance the interests of creditors, management, and shareholders. We offer analysis and testimony related to:
- Asset and Going Concern Valuation
- Liquidation Analyses
- Lost profits and earnings
- Analysis for regulatory bodies including IRS, SEC, and FTC
- Analysis of preferences and fraudulent transfers
- Plan feasibility studies
- Adequate protection issues
- Asset identification and recovery
- Out-of-pocket claims
- Substantive consolidation issues
- Intellectual property