An aircraft component manufacturer required litigation support against a supplier for providing faulty parts.
Challenge: To calculate the direct and “reputational” cost of damages arising from aircraft crashes caused by the faulty components.
Solution: CRA embarked on a comprehensive GA market analysis to isolate the impact on aircraft sales. We also engaged in a discounted cash flow (DCF) analysis of the resulting “but-for” financial model to calculate final damages assessment. CRA calculated a comprehensive estimate of the amount required to make the client whole by using a discounted cash flow analysis of the incremental cash flows from the “but-for” financial model compared to the company’s actual cash flows.
The Convergence of Financial and Societal Value, and What It Means
In this Marakon Commentary, Charlie Johnson and Christine Delivanis discuss how until very recently, the market and society more generally were less aware of...