Legal disputes involving missed earnings will often hinge on intricate financial details. In such cases, the burden of proof will usually lie firmly on the claimant. In situations such as this, having a specialist in your corner is vital. As a result, the question of whether to engage a lost profits expert witness will naturally often arise. Whether you’re dealing with a breach of contract, an intellectual property (IP) dispute, or a personal injury claim affecting revenue, having a specialist who can accurately unravel the most complex financial data and present it clearly can significantly influence the final outcome of your case — whether that be positive or negative.
Inquesta Forensic’s expert witness services are designed to provide you with precisely this kind of invaluable support, ensuring that the financial implications of your case are analysed and assessed by an expert before being clearly communicated to the court. Discover how our expertise in lost profits and other forms of dispute can be the key to winning your case — and why you need a lost profits expert witness on your side.
What is an Expert Witness Service?
A forensic accounting expert witness service consists of specialised professionals offering unique expertise in order to support legal cases. The primary role of a forensic accounting expert witness is to provide an objective and professional assessment that can help the court understand complex issues.
The beauty of using a forensic accountant as your expert witness is that the role requires an innate ability to present complex or data-heavy findings in a clear and concise way — so that anybody who needs to be able to understand the information, can do so with ease.
Role of a Lost Profit Expert Witness
A lost profits expert witness specifically focuses on the evaluation and quantifying of the financial impact a specific event, such as a breach of contract or business interruption, has had on the profits of an affected business.
In order to conduct this assessment, a lost profits expert witness will analyse historical data and future projected earnings, in order to calculate the loss. Once a figure has been reached, they will then present their findings to the court in as understandable a manner as possible. This will help the courts make a more well-informed decision rooted in accurate and well-backed financial evidence and reporting.
When Would You Need a Lost Profits Expert Witness?
Determining if/when you need to engage a lost profits expert witness will depend on several factors, including the complexity of the case, the legal requirements at play, and the nature of the issue. Common scenarios where you would need a forensic accounting expert witness service include breaches of contract, IP disputes, and more.
Here are some of the most common scenarios where a lost profits expert witness can prove crucial to a positive result:
Breach of Contract
During a breach of contract case, it’s vital that you demonstrate exactly how the breach resulted in missed revenue. Lost profits expert witnesses will be able to analyse the firm’s financial records in order to accurately project what their performance would, and should, have been had the breach not taken place.
This process will involve the comparison of the actual financial outcomes against what was expected had the breach not taken place. This is ideal for providing a clear picture of the financial impact.
Intellectual Property (IP) Disputes
Intellectual property disputes require demonstrating how an infringement impacted a business’s financial performance. An expert can assess the current market, analyse all sales data, and then utilise this information to project the lost profits resulting from the initial infringement.
This analysis is vital for quantifying the damages to the company — with the expert also on hand to present a case to the court for compensation.
Personal Injury Claims
If lost profit considerations are part of the damages being claimed in a personal injury case, a lost profits expert witness can be key. For example, if an injury prevents a small business owner from being able to operate to the best of its abilities, an expert will be able to calculate the lost profits attributable to this injury.
Steps When Considering a Forensic Accounting Expert Witness For a Lost Profit Case
The purpose of an expert witness is to have a specialist in the field on your side to embolden your case and ensure that the key details are clearly explained. Therefore, there is a process when engaging a lost profits expert witness, to ensure you get the right candidate. It requires careful consideration, consultation, and a thorough review process.
Some measures to consider when selecting a forensic accounting expert witness for your lost profits case include:
Consult Your Solicitor
The first step in the process should always be to discuss it with your other legal representatives — if you have any. These professionals will be able to provide guidance on whether or not a lost profits expert witness would be necessary, and how their testimony could have a tangible benefit in your case.
They may also be able to help you identify the type of expert best suited to your exact needs.
Identify Potential Experts
Once the decision to engage an expert has been made, the next step will be to identify potential candidates. You should prioritise looking for individuals with all the relevant qualifications and the necessary experience working with firms in your specific industry.
Consider their track record, their credentials, and any prior work they’ve done that could be relevant. This will ensure that you select a specialist who can provide reliable and persuasive testimony that can help you and your case.
Review Credentials
Naturally, if you want a lost profits expert witness, it’s imperative that you select somebody with a strong reputation and track record, a specialist with credibility.
To help, you can review their qualifications, case studies, as well as any publications or presentations they may have made historically. An expert with a good reputation can significantly boost the credibility of your case just by being on board — with their testimony likely being more impactful as a result.
Prepare for Testimony
Once you have a forensic accounting expert witness on board, you should work closely with them to ensure that they fully understand the details of your case. Provide them with all the necessary data, documentation, and background information.
You can also collaborate when it comes to the preparation of their testimony to ensure that it aligns with the issue at hand. Proper preparation and open communication go a long way to ensuring that the specialist’s testimony is clear, concise, and ultimately, convincing.
Inquesta Forensic: Your Ideal Lost Profits Expert Witness Partner
The process of selecting the right lost profits expert witness to support your case can significantly influence the outcome. At Inquesta Forensic, we pride ourselves on our extensive experience and deep knowledge base. Our team of highly-qualified forensic accountants excels at bringing some much-needed clarity to complex financial matters, ensuring that every detail is meticulously analysed and presented to the courts in a manner that is both clear and compelling.
Beyond our technical proficiency, Inquesta Forensic is always totally committed to delivering persuasive and impactful testimony to ensure that your case is presented in the nature you deserve. Our experts are adept in the communication of highly intricate financial data, presenting it in a clear and concise nature that is easily understood by all. This ability to translate complex information into easily-digested insights ensures that your case is not only backed up by robust financial analysis but also compelling testimony
Partner with Inquesta Forensic for a lost profits expert witness service that provides you with the crucial edge needed for a successful conclusion to what is likely to be a stressful, difficult time for all parties. We are here to help instil confidence into your legal strategy and enhance the overall credibility of your case.
Contact a member of the Inquesta Forensic team today to find out more about why you need a lost profits expert witness or to discover our array of forensic accounting services.
Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Always consult with a professional for specific advice related to your situation.
