In commercial litigation, it’s not unusual for two credentialed financial experts to arrive at different conclusions. These differences aren’t always the result of bias; they can stem from reasonable disagreements over relevant inputs and key assumptions. This article discusses how a rebuttal report can help litigating parties pinpoint and resolve their differences.

Clarifying the conflict

Rebuttal reports can be especially valuable in disputes involving divorce, shareholder actions, tort claims or mergers. Rather than debating the entire business valuation or damage calculation, a rebuttal narrows the focus to specific points of contention, turning a complex financial debate into a list of actionable issues.

For example, two experts might agree on most aspects of a business valuation but diverge on a few critical factors, such as owners’ compensation, the company’s projected growth rate and the discount for lack of marketability. A rebuttal report breaks these differences down clearly and uses objective data to test the strength of each side’s assumptions.

Rebuttal experts may also quantify how each issue — individually and in combination — impacts the overall conclusion. This helps attorneys and clients assess where compromise is possible and where battle lines may need to be drawn.

Choosing the right format

Rebuttal reports come in two main formats:

1. Written reports. A formal written rebuttal provides a detailed, documented response. It includes procedures performed, issues identified and the rebuttal expert’s conclusions. It should highlight all errors and oversights, regardless of which side they favor, to preserve the report’s credibility.
2. Oral reports. An oral rebuttal, often delivered in a deposition or pretrial conference, offers strategic advantages. It avoids creating a document that opposing counsel can scrutinize in advance. It can also reduce litigation costs. But it has downsides: Counsel must be adept at framing technical questions, and the absence of a written record can leave judges or juries without a clear reference.

What’s appropriate depends on the time and resources available. Another relevant consideration is whether the parties are using a neutral third expert or the original valuators to generate the rebuttal report.

Break deadlock

Rebuttal reports don’t just highlight flaws — they facilitate resolution. By translating technical differences into digestible insights, they help parties move past valuation gridlock and toward common ground. Whether your case is headed for court or settlement talks, a well-crafted rebuttal report can shift the narrative from “who’s right” to “what’s reasonable.” This can be a critical distinction when the stakes are high.

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