Forensic valuation

The forensic sciences are at the service of justice. The origin of the word lies in the Latin forum that means marketplace. In ancient Rome, hearings were held on the market. Probably the term forensic began in medicine. At present a lot of forensic specialties exist. Popular television show how crime scene investigation is done on a regular basis. It is not surprising that the forensic appraiser (forensic valuator) makes its appearance. Scientifically, there is a sub-discipline, and the total field is known as forensic economics (forensic economics).

Forensic value can be made for criminal cases (such as fraud and insider), administrative (eg disputes with regulators and NMa and AFM) and civil cases. They are mainly calculated to determine the economic value of interests in companies or businesses or to determine the amount of economic damage if disadvantage is caused by misconduct or wrongdoing. The economic concept of value is subjective. The position and role of the stakeholders are central, and can only be determined on the basis of expectations. Economic value is in contrast to accounting an ex ante concept. Forensic reflections on missed assignments play the lead flows. Expectations at the hands of third parties not materialize so that economic value is lost.

In some cases the extent of the damage is pretty easy to fix. Buildings and machines can be lost by fire and related damage can be calculated by experts fairly simple. Objects generally have a simple way to determine price. For trademarks, patents and trade this is more difficult. It becomes even more complicated when an unexpected event changed the course of events so that the expected value can no longer materialize. If the change is the result of culpable conduct, the question comes quickly to the extent of the damage dealt. There is not a direct way to fix the root of the problem since it is precisely that something has not occurred. This means that the forensic appraiser based on economic principles should be able to construct what is, assuming the position and situation in question, should have been expected. In formulating economic expectations causalities play an important role. Parties had at the time decided how the means should be used to achieve a certain goal. Therefore expecting something is different than predicting something. For the latter no knowledge required.

Economic loss can both have a personal and a business nature. By a dismissal missed salary payments are at stake. Whether or not intentionally caused, an accident can end the active conduct of a profession. Besides additional expenditure a lost income may occur. Within a business environment agreements which are unlawfully broken, such as customer-supplier relationships or competition clauses, can cause economic damage. Regulators may wrongly enforce remedies which are damaging economic effects. Also, fraud and disputes
around  separations have economic implications and are work for the forensic appraiser.

Within BrightOrangeTalanton we have extensive experience in the field of forensic value. We carried out assignments cover both civil, and in administrative and criminal cases.