Company Forecasts or Projections –...
Peter Gampel, Managing Director of Gampel Forensic and Valuation - A forensic accountant or a business valuator is often presented with management’s forecast. What degree of reliability can that person place on the forecast for either a valuation of a business or for a determination of lost profit for business damages? That depends. Take for example the case of Cargotec Corporation v. Logan Industries, Fourteenth Court of Appeals No. 14-17-00213-CV. Cargotec and Logan had entered into a letter of intent (LOI) whereby Cargotec would acquire Logan’s assets.