NERA Experts Explore the Market Approach in Global Arbitration Review’s Latest Guide to Damages in International Arbitration

18 February 2021
By Dr. Richard Hern, Zuzana Janeckova, Yue (Jim) Yin and Konstantinos Bivolaris

The market or comparables approach is one of the three main valuation approaches commonly used for the purpose of quantum damages assessment in international arbitration. However, there are many challenges that come with applying a comparables-based valuation framework, not least the challenge of finding relevant market comparators, which may be difficult if the asset has rare characteristics or uncommon product markets.

In a chapter entitled “Market or Comparables Approach” published in Global Arbitration Review’s Guide to Damages in International Arbitration, NERA Managing Director Dr. Richard Hern, Senior Consultant Zuzana Janeckova, Consultant Yue (Jim) Yin, and Research Officer Konstantinos Bivolaris discuss the key steps of a standard comparables valuation approach. They then present two case studies, illustrating when the comparables valuation method may be appropriate and when not. Finally, they discuss possible extensions to a standard comparables valuation approach that can be used in arbitration cases.

GAR’s Guide to Damages in International Arbitration is a desktop reference guide for arbitration practitioners seeking a high-level overview of damages, including related legal principles, procedural issues, valuation techniques for assessing and quantifying damages, and industry-specific considerations. The guide is available in hard copy for purchase from Global Arbitration Review.