Forensic Accounting · Quantification of damages
Quantification of Damages
An independent, reasoned calculation of the financial loss in a dispute, prepared so lawyers can rely on it in negotiation, mediation or court.
- A reasoned damages figure, not a guess
- Lost profits, loss of earnings and business interruption
- Review of the other side's calculation
What we do
We quantify losses from breach of contract, business interruption, misleading conduct, lost opportunities, personal injury and loss of earnings.
We compare what happened with what would most likely have happened without the event, and measure the difference on the basis the law requires, as instructed by your lawyer.
We review and critique damages calculations prepared by the other side's expert and identify the assumptions that drive their figure.
What usually decides the figure
The 'but for' scenario
The loss depends on what would have happened otherwise. That scenario has to be grounded in the business's own history, budgets and market evidence.
Lost profit, not lost revenue
Damages should reflect costs saved as well as revenue lost. Claims built on revenue alone overstate the loss.
Other causes
Market conditions, seasonality or management decisions may explain part of a decline. These need to be separated from the event in dispute.
Loss period and mitigation
How long the loss lasts, and what was or could have been done to reduce it, often moves the figure more than the calculation method.
Loss of earnings
For individuals, past and future earnings depend on employment history, career path and the probability of different outcomes.
Our approach
- Confirm the legal basis of the claim, the loss period and the questions to be answered with the instructing lawyers.
- Build the counterfactual from historical performance, budgets and external evidence.
- Calculate the loss, test the key assumptions, and show how the figure changes if they change.
- Report with schedules that the other side and the court can follow.
We quantify the financial loss on the basis instructed. Whether a loss is recoverable at law is a question for the lawyers and the court.
Principal
Principal
Erin Huang, CPA
Principal, Maxwind
Erin is the principal of Maxwind Analytics. Her background combines corporate finance, building and running businesses, and specialist valuation and forensic work.
Maxwind Analytics has advised Melbourne businesses and their advisers since 2020.
About ErinHow the engagement works
- EnquiryTell us about the matter by phone or through the enquiry form.
- Conflict and scope checkWe confirm we can act independently and agree what needs to be answered.
- RecordsYou provide the records we need through a secure link.
- Analysis and deliverableWe complete the work and explain the findings before finalising.
Fees and timing
Most damages engagements are offered with a clear scope and a fixed fee for each stage of the litigation timetable, agreed before work starts.
Questions we are often asked
Can you review the other side's damages report?
Yes. We identify the assumptions driving their figure, test them against the records, and set out where and why our view differs.
Do you quantify personal loss of earnings?
Yes, where the financial analysis is the main question. Medical and vocational evidence come from other experts.
Discuss a damages claim
A short conversation is usually enough to tell whether we can help and what the work would involve.
