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ARXIS - Litigation Consulting
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August 2020

Recent Case:

Lost Income via Facilities Management Company

which way to go

Type of Matter:

The owner of a parking structure contracted out the management of the facility. The management services included collecting the parking fee and remitting the appropriate amount to the owners. At some point the owners began to suspect that money was being stolen. They did an investigation that included reviewing video surveillance evidence and determined that there was reason to proceed with a more formal investigation. They reviewed surveillance videos for several days and determined rather precisely how many cars entered the facility that were not reported as paying cars. With that evidence in hand they replaced the management company and called an attorney who contacted Arxis.

Arxis Work:

Arxis Financial initially reviewed the sampling of days that had been reviewed by management. There was little doubt that the amount of revenue actually collected on those days was materially understated. Based on the sampling we determined the methodology of the theft and, at least on those days, the amount of the theft. The methodology was confirmed by review of additional surveillance and documentation.

The next concern was to determine the period of time the theft took place so that the under-reported revenue could be quantified. Documents were reviewed and we found that the same company held the contract for several years and, additionally, the personnel hired by the management company to work at the parking structure had not changed since the beginning of the contract. The conclusion was that the loss period extended over the entire period of the contract.

Arxis Financial determined a ratio of reported cars to actual paying cars identified on the video surveillance and applied that ratio across the entire contact period to determine an amount of lost income. We compared our results with the actual results of income reported by the new management company and were satisfied that we had accurately estimated the lost income.


A jury trial was conducted at which we provided expert witness testimony. The jury came back with a verdict against the defendants and awarded damages based on the lost income calculations prepared by Arxis Financial.

Practice Profile:

Business Valuation Services for Succession Planning


Of all the assets that make up an estate, the most complex and valuable is often the closely-held business. The business represents a lifetime of effort and the source of wealth, income, and great satisfaction. The first hurdle in succession planning is to understand what the owner has to pass along. Establishing the nature of the business and the ownership interest is critical to accurately and efficiently implementing a succession plan. Putting a value on that interest is easily the most difficult part of determining "What do I have?"

Hiring the right valuation firm is obviously a crucial decision. Arxis Financial's valuation specialists provide clients with a comprehensible valuation that aids attorneys, business owners, management, and financial planners in succession planning. We also have extensive experience in presenting and defending our findings in the context of litigation. Our clients benefit from having valuation professionals who understand the realities of market valuations, resulting in very defensible valuations. Our experts are well-known in the industry and highly respected for their depth of knowledge and resources.

The Business Valuation practice is headed by partner Chris L. Hamilton, CPA, CFE, CVA. Mr. Hamilton is a Certified Public Accountant, Certified Fraud Examiner, and a Certified Valuation Analyst. He is a licensed life and disability insurance agent and a General Securities Representative. Mr. Hamilton has published articles in several publications, and has made presentations at national conferences, training institutes and seminars on topics including forensic accounting, fraud and business appraisal.

If you have any questions about Business Valuation Services for Succession Planning, please feel free to contact us.

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Chris Hamilton, CPA, CFE, CVA
Chris Hamilton, CPA, CFE, CVA
(805) 342-0749
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