Introduction

A central issue in many business investment disputes is whether and how the alleged conduct by the respondent injured the ongoing prospects for that business; in other words, the future stream of earnings. Valuation "is, in essence, a prophecy as to the future." To assess damages suffered by a company, or to value a business based upon its value to third parties, an arbitrator or an expert must necessarily answer questions about that future.[1] What would the revenues have been? The expenses? Would additional capital have been required? How certain or reliable are those ...