Expert Valuations for Disputes: your Strategic Edge in High-Stakes Litigation.
In today’s dynamic business environment—where contracts grow increasingly complex and claims often exceed millions of dollars—independent valuations have become indispensable. No longer a mere technical exercise, valuations are now a critical tool for substantiating legal positions, enabling fair settlements, and persuading arbitrators or judges with technical rigor.
What is a Dispute Valuation?
A dispute valuation is a thorough financial analysis of a company, a specific asset, or an economic loss conducted within the context of a legal conflict.
Unlike valuations for internal management or voluntary transactions, the standards here are significantly higher. Every assumption, calculation, and methodology must be rigorously documented, defensible, and supported by compelling empirical evidence.
Why Are They Critical in Litigation and Arbitration?
The data confirms their growing relevance. According to the Arbitration and Mediation Center of the Santiago Chamber of Commerce (CAM Santiago), 458 arbitration cases were filed in Chile in 2024, with an average claim value of approximately USD 770,000 (CAM, 2024). Studies suggest that around 30% of domestic cases and over 40% of international commercial arbitrations involve claims tied to valuations or economic damage calculations (Queen Mary University of London & PwC, 2020).
In these high-complexity scenarios, the quality of the technical report can shift the outcome:
- Enhances Credibility: Strengthens your position before judges, arbitrators, and counterparties.
- Quantifies Damages: Objectively estimates economic losses using accepted methods (DCF, market approach, replacement cost, etc.).
- Reduces Uncertainty: Provides a rational basis for settlement or negotiation.
- Fortifies Strategy: Avoids the pitfalls of poorly structured or technically flawed positions.
Common Dispute Scenarios Where Valuation Is Key
Expert valuations are essential in situations such as:
- Shareholder Disputes: Conflicts over minority interest buyouts or exit valuations.
- Contractual Breaches: When the alleged loss in value affects assets, business units, or startups.
- Post-M&A Disputes: Price adjustments, earn-outs, or breaches of reps & warranties.
- Expropriations or Early Termination of Concessions: Determination of fair compensation.
- Company Liquidations: Asset or net worth valuations that affect distributions.
What Defines a High-Quality Dispute Valuation?
To be effective, a dispute valuation report must embody:
- Undisputed Independence: The evaluator’s objectivity is non-negotiable for credibility and admissibility.
- Robust and Justified Methodology: More than just applying techniques—the rationale must be clear, sector-relevant, and fully adapted to the specific case.
- Deep Industry Knowledge: Beyond financial models—market insights, key variables, and risk assumptions must be solid and defensible.
- Expert Witness Capability: The evaluator must be capable of defending the report confidently—before auditors, opposing experts, or as a court-appointed expert.
SAJOR’s Approach: Turning Financial Complexity into Strategic Argument
At SAJOR Consulting, we have extensive experience conducting valuations in dispute contexts. Our team has served as financial experts in arbitration and litigation cases, combining:
- Custom-Built Valuation Models: Tailored to the specific technical and legal complexity of each dispute.
- Empirical Market Evidence: Benchmarks and real transactions to support all assumptions.
- Clear and Defensible Expert Reports: Concise, well-reasoned, and technically robust.
- Expert Testimony: Skilled communicators capable of defending our analysis in hearings and tribunals, including at CAM Santiago.
Our recent work includes valuations for loss of earnings, economic damages, and asset impairments due to third-party actions.
Final Thoughts: A Strategic Asset in Every Dispute
In disputes, a solid valuation is more than a number—it’s a bridge between facts and legal positioning.
In high-stakes litigation or arbitration, where every technical argument counts, independent and expert financial advice is not a luxury—it’s a strategic necessity.
Looking to strengthen your position with a world-class valuation?
Let’s talk. At SAJOR Consulting, we translate financial complexity into compelling, defensible insight.