Robert A. Bonavito, CPA PC

New Jersey Business Appraisals

Business Damages

Our New Jersey business appraisals firm has the training, experience and judgment to provide sound, defensible economic damage assessments. Often business litigation involves economic damages. In some instances, companies seek compensation for one or more of the following:

  • Lost business value
  • Lost profits
  • Breach of contract
  • Lender liability claims
  • Tortuous interference claims
  • Theft of intellectual property claims
  • Breach of covenants not to compete
  • Insurance claims
  • Patent infringements
  • Trademark violations
  • Fraudulent conveyances 

New Jersey Business Damages FAQ

What are business damages?

Business damages especially in New Jersey when they involve a business appraisal, can be calculated in many ways and include many legal remedies. Depending on the type of damages we may be able to calculate the net present value of damages. Sometimes you may receive a cash award or perhaps you could pursue specific performance or even an injunction. Profits can be based on legal precedent or equitable relief depending on the jurisdiction the dispute is settled in.

How are business damages calculated?

We use different methodologies to calculate business damages depending on the type of loss. Sometimes the damages are based on expected lost profits, consequential damages or liquidating damages. We have used these methodologies for New Jersey business appraisal damages extensively.

What types of damages are covered with business insurance?

The best protection against damages and lawsuits is to have insurance to cover potential liabilities. Typically, liability insurance can cover damages or claims by employees, customers or partners.

Can I still obtain damages if I did not take out a business insurance policy?

If you do not have business insurance to protect you from potential lawsuits, both you and your corporation can be exposed legally. However, not having business insurance does not prevent you from counter suing or suing for damages.

How often should I have my business appraised?

It is important to have a business appraisal on your company in order to substantiate the values of your stock when there is a marriage, divorce, death or major event such as an acquisition or new partner coming on board. By having an appraisal, you will be able to determine the actual value at specific dates. By documenting appraising the business value at specific times you will be able to show the appreciation or the devaluation of your stock.

How much does a business appraisal in New Jersey cost?

The cost of a business valuation for a New Jersey Business Appraisal is based on the complexity of the valuation, the underlying records and experience of the appraiser. Typically, appraisals are based on hourly rates, so for example whether an appraisal takes 20 hours or 200 hours depends largely on what you want done. The cost can vary from as low as $10,000 to over $1,000,000 for complex litigation and or corporate acquisitions.

What are the steps to take when filing a business damages claim?

The first step in filing a business claim in New Jersey, is to take some time and think about what your ultimate goal is and realize that not only will it be expensive but time-consuming. Once you are sure you want to proceed with the lawsuit the next step is to discuss potential damages with a forensic accountant and have him recommend a suitable attorney in order to initiate the lawsuit.

How much can I expect to recover for my business losses?

Unfortunately, there is no guarantees that you will receive anything on a potential lawsuit involving a New Jersey business appraisal. Not only does it depend on the facts and circumstances, but the quality of the forensic accountant can have a drastic effect on the ultimate outcome. The most important thing is to find a qualified, experienced forensic accountant because ultimately the damages are dependent on his analysis and testimony.

What do I do if an employee is in breach of contract?

If there is a material breach of contract the first thing you need to do is to obtain documentation to back-up your claims. Once you are sure that it is a material breach and you have sufficient relevant evidence to demonstrate that the next step is to contact the forensic accountant to make sure the damages are actually substantial enough to warrant a lawsuit.

What is the best way to resolve an internal dispute among business owners?

Internal disputes between business owners occur often and can be very difficult, expensive and time-consuming to settle. It is important to take some time and think the facts through carefully. Rushing into a lawsuit will take time away from the business and be extremely expensive. It is usually best to have a trusted advisor or forensic accountant talk to each person separately and see if you can reach an amicable solution.

Can I be forced to sell my ownership interest?

When dealing with New Jersey appraisals and disputes between shareholders it is possible that the courts may require one party to sell their interest in the company to the other party. Typically, the stock is valued at fair value and that value is used to purchase the stock from the party that is going to be forced to sell their shares.

What is “specific performance”?

In situations where money damages are not adequate, the courts may rule that a party must perform based on the contract, which is typically called specific performance.

What is “eminent domain”?

Eminent domain occurs when the government or an agent takes possession of private property. When this happens the government or agency is required to have an appraisal and appropriately compensate the private citizen for his property.

What are “compensatory damages”?

Compensatory damages are usually awarded in civil actions where losses occurred that were the result of negligence of one party against another.

Am I responsible for damages to an employee who suffered a personal injury while performing work-related duties?

The damages will depend on the facts and circumstances, but every company is required to have a worker’s compensation insurance policy in the State of New Jersey. These policies do cover many work-related injuries. However, employees can still sue for damages. Usually, the best defense against these damages is a good liability insurance policy.

Can I declare business losses when filing taxes?

Depending on your tax situation, you can file for business losses when filing personal taxes. Business losses can be deducted on your return if you meet certain requirements. If you are unable to deduct the current losses on your tax returns you can utilize a net operating loss carry forward for provision or net operating loss carry back provision.

What should I do if I suspect my partner of embezzling?

If you suspect your partner of embezzling funds from the company, it is important to obtain as much documentation as possible. It is best to hire a forensic accountant to assist with identifying documentation and how best to obtain the documentation. Once you have sufficient relevant evidence you can then confront the embezzler and seek remedies, which may include a complete forensic accounting of your company. 

Contact Us Today to Learn More About New Jersey Business Appraisals

For more information on business appraisals, contact our firm online or by phone at (908) 322-7719 for a consultation.