Finnerty Economic Consulting, LLC (FinnEcon) provides litigation support, valuation, and financial consulting services to law firms, corporations, industry associations, and government agencies. FinnEcon was founded by John D. Finnerty, Managing Principal, who is also a Professor of Finance at Fordham University.
About Finnerty Economic Consulting, LLC
Finnerty Economic Consulting, LLC (FinnEcon) provides litigation support, valuation, and financial consulting services to law firms, corporations, industry associations, and government agencies. FinnEcon was founded in 2003 by John D. Finnerty, Managing Principal, who is also a Professor of Finance at Fordham University and was the founding Director of the Master of Science in Quantitative Finance Program at Fordham University’s Gabelli Business School.
FinnEcon’s litigation support services include performing damages analyses, preparing expert reports, and furnishing expert testimony in federal or state court, bankruptcy court, arbitrations, or mediations. Areas of specialization include matters involving securities fraud, including 10b-5 class actions; broker raiding; breach of contract; valuation issues, including the fair market value of businesses, securities, or derivative instruments; retrospective solvency or fairness; and wrongful termination, including valuing stock options and other forms of contingent compensation.
FinnEcon’s valuation services include valuing employee stock options; valuing a company for change-of-control, estate tax, or other purposes; valuing securities, including bonds, stocks, convertible bonds, mortgage-backed securities, asset-backed securities, restricted securities, and innovative financial instruments for tax or other purposes; and valuing derivative instruments, such as options, futures, swaps, and structured instruments.
Financial consulting services include furnishing advice concerning appropriate hedging strategies, measuring hedge effectiveness, determining solvency retrospectively for bankruptcy or fraudulent conveyance purposes, and pricing securities in connection with capital-raising activities.
John D. Finnerty, Ph.D.
Dr. John D. Finnerty is a Managing Director in the Financial Advisory Services Group at AlixPartners, LLP and a Managing Principal of Finnerty Economic Consulting, LLC. He specializes in securities class actions, business valuation, securities valuation, derivatives valuation, solvency analysis, calculation of damages, statistical analysis, and litigation support for matters involving valuation disputes, securities fraud, solvency, fairness, breach of contract, breach of fiduciary duty, broker raiding, commercial disputes, and employment disputes involving the valuation of employee stock options. He has testified as an expert in valuation, broker raiding, and securities and other financial matters in federal and state court and in arbitration and mediation proceedings. He has also testified as an expert in bankruptcy court concerning valuation, debt-for-debt exchange offers, and the fairness of proposed plans of reorganization.
Dr. Finnerty is also a Professor of Finance at Fordham University’s Gabelli School of Business where he was the founding Director of the Master of Science in Quantitative Finance Program. He has taught for more than 28 years, including courses in corporate finance, investment banking, fixed income analysis, fixed income securities, fixed income portfolio management, principles of finance, securities innovation, and bankruptcy and reorganization. His teaching and research interests include hedge fund and private equity fund management, structure, and performance.
Dr. Finnerty has published 15 books, including Corporate Financial Management, 4th ed., Project Financing: Asset-Based Financial Engineering, 3rd ed., Principles of Financial Management, and Debt Management, and more than 100 articles and professional papers in corporate finance, business and securities valuation, and other areas of finance. His published papers include 10 articles in law reviews and other legal publications, which mainly address damages calculation methodologies and derivatives litigation. His writings and teaching have focused on the analysis and valuation of securities, especially fixed income instruments and complex derivative products, and mortgage-backed and other asset-backed securities. Dr. Finnerty is a former editor of Financial Management, one of the leading academic finance journals, and a former editor of FMA Online. He is a member of the editorial advisory boards of the Journal of Portfolio Management and the International Journal of Portfolio Analysis & Management and a former associate editor of the Journal of Applied Finance.
Two of Dr. Finnerty’s articles, “An Average-Strike Put Option Model of the Marketability Discount,” which was published in the Journal of Derivatives in 2012, and “The Impact of Stock Transfer Restrictions on the Private Placement Discount,” which was published in Financial Management in 2013, develop the average-strike put option model of the discount for lack of marketability and validate the model by testing it on a sample of common stock private placements. The model is widely used by stock appraisers, and it has been recommended on the SEC’s website as a useful resource for calculating marketability discounts. Dr. Finnerty has developed innovative models for valuing convertible bonds, employee stock options, venture capital preferred stock, tuition prepayment certificates, restricted stock, and private equity carried interests.
Dr. Finnerty worked for more than 20 years as an investment banker. He worked on more than 50 public and private financings, and served as financial advisor in connection with several mergers and several project financings. He performed numerous valuations for gift, estate, and other tax purposes.
Dr. Finnerty is a Trustee and a former Chair of the Trustees and a former President and Director of the Eastern Finance Association, a former Director of the Financial Management Association, and a former President and Director of the Fixed Income Analysts Society. He served as a member of FASB’s Option Valuation Group in connection with the revision of FAS 123. He was inducted into the Fixed Income Analysts Society Hall of Fame in 2011.