Review of Lost Profits Article Published in Journal of Business Valuation and Economic Loss Analysis
The Journal of Business Valuation and Economic Loss Analysis published Lost Profits Damages to New Businesses: Adjusting for Survival by David A MacPherson and Stanley P Stephenson in its first issue of 2006. This article is described as providing:
Four approaches to adjusting projected economic returns for the risk of business failure…The authors conclude that directly adjusting the projection model for business survival probability is superior to simply adding a subjective company-specific risk premium to the discount rate.
Recently an anonymous expert witness reviewed Lost Profits Damages to New Businesses and stated that
The authors demonstrate that company-specific risks can be empirically evaluated and the projection model directly adjusted.
The article was rated 5.0 out of 5.0 in all available categories and is suggested reading for expert witnesses specializing in business valuation and lost profits calculations.