Lost profits damages – The trouble with start-ups and never-started-at-alls

Description

Abstract: When calculating lost profits damages for businesses involved in litigation, damages experts can use the company’s historic financial statements to make their projections — if the business has a history. However, calculating damages for early-stage and never-launched businesses requires a different set of analytical tools if experts are to prove to a court’s satisfaction that their damages estimates are reasonably certain. This includes economic and financial data for the subject company, but also market data.