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For many years, insurance companies, lawyers, adjusters, government agencies and businesses have turned to forensic accounting firms like MFA Forensic Accountants to assist with economic damage quantification.

Forensic accountants have the professional training, experience and expertise to perform the assessments and calculations, no matter how challenging they might be.

Forensic accountants such as MFA are able to quantify economic losses across a wide range of areas including insurance claims, fraud and embezzlement, personal injury, business disputes, business interruption, divorce and marital disputes, construction defects, environmental damages, cyber-crime, product liability, patent and copyright infringement and more.

How are Economic Damages quantified?

Forensic accountants use the latest statistical and econometric tools, publications and opinions from industry leaders to arrive at fair and reasonable calculations of loss and damage.

There are several approaches that are utilized when quantifying economic damages, a few examples are shown:

• Benchmark Approach – The performance of the company or individual is compared to other companies or individuals that are similar in nature. This gives the forensic accountant a guideline as to how the company or individual would have performed had  no harmful act occurred.
• Before and After Method – The performance prior to the harmful act is compared to the performance after. In some instances, a forensic accountant may be called on to determine whether or not the company or individual actually benefited from the wrongdoing.
• Underlying Contract – Damages are calculated in accordance with underlying contracts in place at the time of the harmful act.
• Defendant’s Profits – In      cases involving unfair competition or misappropriation of trade secrets,      an accounting of the profits realized by the defendant may be used as a      measure of the plaintiff’s lost profits.

Why MFA?

Quantifying economic damage requires specialized skills, expertise and a wealth of experience and knowledge.

With forensic accounting professionals in over 25 years, MFA has unparalleled national resources to assist our clients in quantifying damages across a wide range of areas, including business interruption, fraud, personal injury, product liability, marital disputes and environmental damages. 

Our forensic accounting professionals are exceptionally dedicated and qualified experts with proven track records who provide economic damage assessments that stand up to scrutiny.

Construction Defects & Delays

Our professionals combine years of forensic accounting and business valuation expertise and experience when calculating lost economic potential due to the occurrence of allegedly harmful events. These calculations are based on three core components: the causal link between a specific event and alleged lost profits (financial causation), the profits that would have been achieved but for the specific event (but-for profits), and the profits that were actually achieved because of the specific event (actual profits). We have a thorough understanding of these components and can therefore provide insightful, objective feedback regarding the merits of a claim for economic damages. Our expertise in forensic accounting and business valuation means that our assessment of the economic damage components will be thoroughly analyzed and well supported. 

Personal Injury and Wrongful Death

While there may not be any one particular “correct” way to estimate the lost earnings suffered by an injured individual, our experiences at McKenzie Forensic Accounting have led us to observe that there are a large number of “incorrect” ways to perform such calculations. If experts that the time to learn, understand, and comprehend the factors involved in the “But-for” model, we believe the issues contested at trial can be significantly reduced to testimony regarding the variables and assumptions used by the individual experts, which in our opinion is much more productive than arguing the merits of two disparate economic damage calculations, particularly when both may be inadequate. 

Wrongful Termination

An employee cannot be fired on the basis of his/her race, gender, ethnic background, religion, or disability. It is also illegal to fire an employee for filing a legal complaint against the company, such as bringing the wrongdoing to light as a whistle-blower. 

At McKenzie Forensic Accounting our professionals are experts at calculating the economic damages associated with wrongful termination.