Signs You Should Be Working with an Economic Consulting Firm
Economic consulting firms are integral for businesses facing complicated cases or disputes. Consultants testify in litigation matters related to economics and finance, with the firm producing research, analysis, and testimony to be used in court cases.
These firms help their clients understand and project market trends, evaluate old and new strategies, and use financial expertise to persuade decision-makers and stakeholders to take action.
They work in private and public litigation giving opinions on regulatory issues or policy proposals, offering evaluations and predictions based on the laws of economics, and giving a quantitative analysis of economic indicators.
So, how do you know you need to work with one?
To start, know that economic consulting firms offer economics and finance experts in the areas of antitrust; securities; financial institutions and their practices; intellectual property damages; health care; labor; energy and telecommunications; and general commercial damages.
Consulting firm clients can include leading law firms, Fortune 500 companies, global health organizations, and government agencies.
1 Your Situation is Complex
Economic consultants are used to gathering data and doing important research and analytical services to provide expert insight into complex financial and economic situations.
There may be many policies, regulations, or general red tape in the way as you look at your business and areas that may need long-term improvement or immediate addressing.
A firm can help guide you through these difficult paths in a more effective way.
2 A Lot of Money is at Stake
Economic consulting firms come into play particularly with multi-million dollar corporations who have much at stake.
For example, in 2007, when Viacom sued YouTube for $1 billion, both businesses retained the services of economic consultants to assess the financial aspects of the case and provide expert advice. The firms were also present to give analysis and testimony in court.
3 You Need A Lot of Experts
In most cases, you will need to bring in an expert to report on the given situation. Often with cases needing a consulting firm, many experts are needed to explore the varying facets of the case.
In the Viacom versus Google case, each company could hire ten experts in different disciplines. Economists would be called in to assess the value of the YouTube clip in question; computer scientists might explain Web video technology, damages specialists could calculate how much YouTube’s alleged infringement cost Viacom.
These people and their expert opinions are all backed by economic consulting firms, who do the research and provide them with solid, factual reports for testimony.
4 Other Examples
Firms may be needed to assess the damages when one business is accused of doing economic harm to another.
They may be needed to forecast current and future liabilities that arise from environmental product liability.
They can also help determine whether price movements were consistent with an alleged manipulative scheme in a particular market.