Lost profits analysis is billed at an hourly rate against a retainer established at the outset, with a written fee schedule and a cost estimate before work begins. The scope of the engagement, and so its cost, depends on the factors below.
How lost profits is billed
Lost profits analysis is billed at an hourly rate for records review, market research, modeling, report preparation, and testimony. A retainer is established at the outset and applied against time incurred. The current rate schedule and retainer terms are provided on request and confirmed in a written engagement agreement.
What sets the scope
Lost profits engagements are scoped to the length of the loss period, the complexity of the business, and how much of the but-for case must be built from market data rather than the company's own history. A single product line with an established sales history and a defined loss period is the narrowest scope; a new venture, multiple revenue streams, disputed causation, or an open-ended loss period widen it. We provide a written fee schedule and a cost estimate before work begins.
What drives cost
Length of the loss period and whether it is closed, ongoing, or must be bounded by the analysis
Quality of the company's financial records and the history available to establish the but-for path
Whether the business is established, so history drives the projection, or new, so market and comparable data must carry it
Number of revenue streams and cost structures that must be modeled separately
Extent of mitigation evidence and offsetting benefits that must be netted against the loss
Deposition and trial testimony, including preparation and travel time