Mortgage Wholesaler Valuation Analysis: Law Firm

Our analysis focused on the future cash flow that the mortgage wholesale operation would have generated had the plaintiff been allowed to continue directing the operation. The operation was set up as a unit of a larger bank, and generated income through inter­est earned on its loan portfolio, and by selling loans on the secondary market. To deter­mine the value of this operation we estimated overall loan generation in coming years, taking into account economic and market changes and which loans would be added to the portfolio and which would be sold to the secondary market. Expenses of the operation were also forecasted, allowing us to estimate cash flows for the operation. These cash flows were then discounted to the present day to arrive at the value of the operation.

The findings of our analysis were summarized in an expert report which was used for settlement purposes. Shortly after our report was submitted our client accepted a favor­able settlement offer.

A Chicago based commercial litigation firm, retained Anderson Eco­nomic Group, LLC as a expert in a matter involving the value of contractual rights to a share of profits earned by a mortgage wholesale operation. Our work was done on behalf of the plaintiff, who was seeking damages for termination of contact.

Damages in Antitrust Cases: AEG Working Paper 2007-02

Anderson, Geckil, Bolema

In this article, the authors use their practical experience in industries in which antitrust issues commonly arise, and their experience in estimating commercial damages in breach-of-contract cases, to examine the issue of properly identifying and estimating antitrust injury.

Amicus Curiae Brief to the U.S. Supreme Court re: Resale Price Maintenance

Anderson, Bolema

A brief filed by Anderson Economic Group in the U.S. Supreme Court in the matter of Leegin Creative Leather Products, Inc., v. PSKS, Inc., dba Kay’s Kloset…Kay’s Shoes. Brief addresses resale price maintenance agreements and per se illegality under the Sherman Act and anti trust provisions.

Three Essential Factors in Estimating Business Value or Commercial Damages

Anderson, Geckil, Funari

The income approach is a common and accepted manner of estimating the value of both publicly-traded and closely-held businesses, as well as calculating certain types of commercial damages. The most common method within this approach is known as “discounted cash flow” or DCF.

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Developments in Litigation Economics

Patrick L. Anderson

This book is a collection of original articles on recent developments in the rapidly growing field of litigation economics. AEG Principal Patrick L. Anderson contributed “New developments in business valuation.”

Practical Dynamic Programming for Business and Forensic Economics (AEG Working Paper, 2005-05)

Patrick L. Anderson

An AEG working paper, presented by Patrick L. Anderson at the 2005 NAFE conference in Dublin, Ireland.

Business Economics & Finance: Using MATLAB, GIS, and Simulation Models

Patrick L. Anderson

Takes theoretical advances in economics and finance and applies them to the real world.

Economic and Fiscal Assessment of a Change in Residency Requirements in the City of Detroit

Patrick L. Anderson

An analysis of the 1999 residency requirement imposed by the city of Detroit.

Commerce Clause & Twenty-First Amendment Analysis: Midwest Beverage Distributor

Case Study:
Commerce Clause & Twenty-First Amendment Analysis
Midwest Beverage Distributor

One of the Midwest’s largest distributors of beer, wine, and spirits, serving 36,000 locations in multiple states, had a Michigan affiliate that was prevented from full participation in the Michigan spirits distribution market due to a provision in the Michigan Liquor Control Code. 

Anderson Economic Group was retained by the distributor to provide expert analysis for a suit filed against the state of Michigan. Out team prepared a preliminary report and affidavit which described how the state law was violating the Commerce Clause of the United States Constitution. The report discussed the peculiarities of the wine industry; the importance of nationally-established standards and laws in all types of commerce; and the intersection between the XXI Amendment and the Commerce Clause.

After a unsatisfactory hearing at the district court level, our client is considering an appeal, based partially on the factual record established by our report.

Market and “Good Cause” Analysis: Mercedes-Benz Dealership – Chicago Area

Case Study:
Market and Good Cause Analysis
Mercedes-Benz Dealership – Chicago Area

The attorneys for a franchised dealer of Mercedes-Benz USA operating in the Greater Chicago Area retained Anderson Economic Group after Mercedes-Benz USA appointed a new dealer within the “Area of Influence” of their client. Anderson Economic Group was tasked with evaluating the effects of the new dealer on the current dealer’s operations, and analyzing the market before and after the introduction of another dealership.

We completed an expert report that began with an evaluation of the fundamental rationale of the franchise relationship and the responsibilities of both parties. The report continued with a detailed analysis of sales data, the pattern of sales as distance from the retail outlet increases, the geographic and demographic characteristics of the changed market areas, the concentration of Mercedes-Benz dealers in other cities, and the likely effect of the new dealer on the sales of the existing dealer.

The analysis concluded that there was not “good cause” under the Illinois Statute for the appointment of a new dealer in the area. Our report rebutted contrary reports submitted by USAI and Price Waterhouse Coopers, and also commented on a report submitted by RL Polk.

After submission of the report, Patrick Anderson was deposed on its contents. Mercedes-Benz later settled the case by allowing the Plaintiff to sell the dealership to a new owner that would be given a chance to relocate, and also allowing the Plaintiff to open a new dealership in a more favorable market.