Litigation Support Services
Litigation support services in the context of business and asset valuation involve the preparation of independent, defensible valuation analyses and the provision of expert witness testimony in legal and dispute-resolution proceedings. When a case turns on the value of a business, its assets, or the economic damages suffered by a party, the credibility and rigor of that valuation can determine the outcome.
Appraisal Economics has provided litigation support services in some of the largest business and asset valuation cases in the United States, with expert witnesses recognized by federal courts, tax tribunals, regulatory bodies, and arbitration panels across the country.
Litigation Support: Types of Cases We Handle
Appraisal Economics has provided expert witness testimony and valuation support across a broad range of dispute types.
Federal tax cases
Our expert witness testimony has played a central role in major cases involving inter-company transfer pricing, purchase price allocation, gift and estate taxes, company reorganizations, and recapitalizations. Cases in which Appraisal Economics has provided expert witness testimony before the U.S. Tax Court include:
- Nestle Holdings Inc. v. Commissioner, involving the fair market value of intangible assets transferred in a related-party transaction
- United Parcel Service of America v. Commissioner, involving the economic substance of a corporate restructuring of an excess-value insurance program
- DHL Corp. v. Commissioner, involving the valuation of the DHL trademark in intercompany transactions with foreign affiliates under IRC Section 482
Determining damages
Our experts provide analyses to determine the present value of lost income and the incremental market value of property in infringement and breach of contract cases. Quantifying damages is often the central issue in these disputes, and a well-supported, methodologically sound damages analysis is essential to a credible claim or defense.
Dissenting shareholder cases
The fair value of shares for dissenting shareholders can only be determined by reference to the overall value of the underlying business enterprise. Appraisal Economics is frequently engaged to provide business enterprise valuation and to testify to the resulting per-share value in appraisal proceedings and shareholder disputes.
Ad valorem cases
Our valuations have been used to establish initial assessments, contest faulty assessments, and support expert testimony in property tax disputes. We provide these appraisals for both real and personal property.
Bankruptcy cases
Determining whether a company represents greater value as a going concern or through liquidation of its assets is often the critical factor in bankruptcy proceedings. Appraisal Economics is regularly called upon to conduct going concern and liquidation analyses that inform these decisions.
Tribunals Where Appraisal Economics Has Been Recognized as an Expert
Our professionals have been recognized as expert witnesses by:
- U.S. Tax Court
- U.S. Department of Justice
- U.S. District Courts
- Federal Communications Commission (FCC)
- Bankruptcy Courts
- State Tax Appeals Courts across many jurisdictions
- American Arbitration Association
Who Needs Litigation Support Services
- Attorneys and legal teams in tax, commercial, intellectual property, and bankruptcy matters who need a credentialed, independent valuation expert to support or defend a position
- Corporations and business owners involved in disputes over business value, damages, shareholder buyouts, or asset assessments who need an analysis that will hold up in court
- Tax counsel handling transfer pricing disputes, estate and gift tax controversies, or purchase price allocation challenges before the IRS or Tax Court
- Bankruptcy trustees and counsel who need independent determinations of going concern versus liquidation value
- In-house legal and finance teams at companies facing regulatory proceedings, ad valorem tax challenges, or commercial arbitration
Why Choose Appraisal Economics for Litigation Support
Appraisal Economics is an independent, pure-play firm offering valuation services with no audit, tax, or investment banking relationships that could compromise the independence courts and opposing counsel expect from an expert witness. Our professionals bring credentials across the disciplines that litigation assignments require, including CFAs, CPAs, ASAs, and MAIs, alongside specialists in transfer pricing, intellectual property, real estate, and machinery and equipment.
The cases we have worked on, including landmark U.S. Tax Court matters involving Nestle, UPS, and DHL, reflect the complexity and stakes of the disputes where our expertise has made a difference. Our work is built to withstand the Daubert standard and equivalent scrutiny in all forums where valuation evidence is presented.
To discuss a litigation support engagement, contact us for a no-cost consultation.
Frequently Asked Questions About Litigation Support Services
What is litigation support in the context of business valuation?
Litigation support refers to the range of services a valuation firm provides to assist attorneys and their clients in legal disputes that involve questions of value. This includes preparing independent valuation analyses, quantifying economic damages, reviewing opposing expert reports, and providing expert witness testimony in court, arbitration, or regulatory proceedings. The distinguishing feature of litigation support work, compared to standard valuation engagements, is that the work product must meet the evidentiary standards of the applicable tribunal and withstand adversarial scrutiny.
What is the Daubert standard and how does it apply to valuation expert witnesses?
The Daubert standard is the framework used by federal courts and many state courts to assess the reliability and relevance of expert testimony. Under Daubert, courts evaluate whether the methodology employed by an expert is testable, has been subjected to peer review, has a known error rate, and is generally accepted within the relevant professional community. Business valuation, as practiced by credentialed professionals following USPAP and established financial theory, meets the Daubert criteria. Appraisal Economics prepares all litigation support work with Daubert scrutiny in mind, ensuring that methodologies are well-documented, defensible, and grounded in accepted practice.
What is the difference between a consulting expert and a testifying expert?
A consulting expert assists attorneys in understanding valuation issues, reviewing opposing analyses, and developing litigation strategy. Their work may be protected by attorney-client privilege and may not be subject to discovery. A testifying expert, by contrast, prepares a formal expert report and is prepared to present and defend their conclusions under oath. Appraisal Economics can serve in either capacity depending on the needs of the engagement, and our professionals are experienced in both roles.