Predicting the costs of litigation

Abstract

Because of their strategic nature and the large amounts of money at stake, decisions to merge with, acquire, or take over other companies and decisions to invest in major new product development are usually accompanied by thorough analyses of expected business consequences. Expected revenues and costs are closely examined, and the effects of critical business variables beyond the company's control (e.g., inflation, industry wage trends, competitors' pricing strategies) are explored. Discounted cash flow and “what if” analyses are commonly used to produce a quantitative understanding of the likely financial outcomes of the strategic options, as well as the chances of falling short of, or surpassing, the expected results.

Citation

Bennett Victor, M. (1978), "Predicting the costs of litigation", Planning Review, Vol. 6 No. 6, pp. 15-18. https://doi.org/10.1108/eb053861