Business Valuation News

Building Value Newsletter Volume VIII, Issue I

A Business Valuation Newsletter for Business Owners and the Professionals Who Advise Them

Using Statistics to Assess Lost Profits During an Economic Downturn

The economic downturn has obviously had negative effects on many commercial enterprises, causing them to suffer financial losses. When a firm is a plaintiff in a business lawsuit, how can one evaluate how much of its losses were caused by the defendant versus deteriorating economic or industry conditions? This article discusses the use of statistical analysis to make this sort of assessment.