An expert MDD team went through massive amounts of electronic data – including the accounting records of the East Coast seafood company, the startup and the competing businesses – extracting the information they required to perform their analyses. The team also interviewed the original company’s management and worked closely with its CFO in developing theories and quantifying the economic losses.
The team analyzed the records by customer and by product and surmised that the performance of the original business had taken a downturn immediately after it had been sold. While the team acknowledged that several natural issues were at play – for example, a regional shortage of scallops – it concluded that the majority of lost profits had been captured by the businesses the original owner had recently invested in. One factor in this deduction was that while business volume for the
original company had gone down, the collective volume for the competitive companies had gone up by almost the exact same amount.
Using historical data and information concerning the tenure of client relationships in the seafood industry, the MDD team was able to conservatively project the impact lost clients would have on the East Coast seafood company’s future profits.
The counsel used all this data during the arbitration phase. We also testified and served as an expert witness during the cross-examination of the opposing expert