Case Studies

Authoritative Valuation of Successful Haute Couture Fashion Company

Accumyn’s team of economists and valuation professionals valued a successful haute couture fashion company. A start-up designer teamed up with a pair of Houston-based investors and fashion industry experts to secure funding. In the first year, sales to retail stores reached seven figures.   However, as soon as orders for the second season were booked, the designer no longer wanted the involvement of her Houston partners. The designer backed away from her commitments to them, cutting off further involvement and breaking away to form a separate company that continues to flourish, with worldwide sales of eight figures.

On behalf of the Houston partners, who wished to realize the full value of their ownership interest, Accumyn prepared a detailed valuation analysis of the original company, as of the time the designer broke away. Using a Fair Value standard, the amount that compensates an owner involuntarily deprived of property, and presuming that the company had gone forward with the involvement of the Houston partners as intended, Accumyn reached a conclusion on the value of the company, under both an income approach and a market approach.

Mismanagement of Engineering and Construction for Power Plant

Accumyn assisted a state regulatory agency representing ratepayers in a proceeding to address the rising cost of construction for an electricity generating facility. The matter involved management of engineering and construction for a 630 megawatt Integrated Gasification Combined Cycle (IGCC) power plant, the first of its kind of its size. The owner had received approval to construct the facility in 2007 based on an estimated project cost of $1.98 billion. The estimated cost soon increased to $2.53 billion for which a second approval was granted in 2009. By early 2011, the estimated cost had increased again to $2.88 billion.

Accumyn’s experts provided testimony on gross mismanagement based on a review of records illustrating the utilities performance in its execution of the project. Aided by a team of engineers, economists and accountants, Accumyn conducted a review of the project’s progress and cost reports, correspondence, and hearing testimony. To enhance research efficiency, Accumyn’s e-discovery specialist converted almost 8,000 separate documents to searchable format.   Project management and financial specialists addressed mismanagement of the project’s FEED Study; the delivery method; the contracting approach; the project controls program; the reasonableness and prudency of management’s engineering and construction of the project’s grey water disposal process; and budget manipulation. Testimony addressed financial reporting, transparency and management’s adherence to industry standards and practices for project and construction management.

Roof Top Support System Trade Dress and Trademark Infringement

We were asked to prepare an expert report and provide testimony in court regarding damages and liability in a trade dress and trademark infringement matter.
The dispute between a manufacturer and a distributor of rooftop support systems involved the design and appearance of hard rubber supports for use under heavy rooftop equipment. The distributor had purchased and sold the manufacturer’s product for several years prior to the infringement, in which the distributor arranged for alternative manufacture of supports virtually identical in appearance to the manufacturer’s product. We calculated both lost profits to the manufacturer and unjust enrichment by the distributor. We also took care, in the event the court decided to award both measures of damages, which it did, to quantify the amount common to each, due to supply chain issues.

Provided multiple reports and declarations and testified at trial and in post-judgment hearings. Jury accepted our opinions and awarded damages based solely our calculations.