This case involves a plaintiff who applied to operate a business out of a property owned and operated by the defendant state county. The county denied the plaintiff her business permit forcing the plaintiff to bring a formal complaint against the county for unlawful discrimination. The complaint resulted in the suspension of pertinent grants to the county for its discriminatory practices. The county then allowed the plaintiff to apply for a permit but imposed an impossible insurance requirement. Because of these hurdles, the plaintiff was forced to abandon her business due to the loss of significant profits over several years. An expert in finance and forensic accounting was sought to calculate the plaintiff’s lost revenues and profits.
Question(s) For Expert Witness
- 1. Please describe your business valuation experience.
- 2. How would you determine the total loss of revenue/profits for the plaintiff?
Expert Witness Response E-090484
I have been valuing businesses for the past 30 years and I am licensed by a reputable finance institute. I am also a licensed real estate and business broker in a west coast state and have previously been licensed in a southern state. I started a business brokers association and served as president for a number of years. I practiced commercial law internationally as an attorney for 23 years during which time I was involved with a large case against various municipalities who had discriminately canceled our client’s contract to provide parking meter service to the country. In 1983, I came to the United States to serve as in-house counsel for an international company. Projections are a base of future loss. As the authorities say, ‘you can prove the past, but cannot guarantee the future.’ Future projections are based on the owners’ financial ability to grow the company as well as her ability to control and manage growth. I have authorities that I can quote on this important aspect.