11-94. You are appointed as the forensic accountant for Dark Lighting PLC. One of its top salesmen, Brendon Lim left the firm last year and joined their competitor, Bright Lighting PLC. In Brendon’s contract under his termination clause, he was not allowed to take confidential documents such as client details with him. Dark Lighting is convinced that Brendon Lim has poached its clients. After preliminary investigations, Dark Lighting realized it was getting lesser sales from its major customers. Also during the year, it lost two of its largest clients to Bright Lighting and its information systems show that Brendon Lim downloaded confidential files to his computer a week before he left the company.

You have been engaged to calculate the amount of business poached by Brendon Lim.

a. What method of business valuation would you apply? Why?

b. What are the advantages and disadvantages of the method you have chosen?

c. What do you require from Dark Lighting to show that clients have been poached by Brendon Lim?

d. Write your suggested methods and additional requirements in a report for your professor.