Calculations for Recovery of Lost Profits Damages
Co-Sponsored by the National Association of Certified Valuators and Analysts®
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Program Description |
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How You Will Benefit |
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Lost profits calculations lie at the heart of many commercial litigation matters—and they must be built on a foundation of solid methodology, reliable data, and professional credibility. This in-depth course equips attendees with the tools to quantify economic harm with clarity, accuracy, and defensibility. It goes beyond the foundational legal tests of proximate cause and reasonable certainty, and focuses instead on what truly matters when calculating damages: building a defensible, well-supported lost profits model.
From established enterprises to startups, the methods and challenges of projecting lost revenue and profits can vary widely. Attendees will explore key techniques, including the before-and-after method, the yardstick method, and but-for forecast modeling; each with real-world applicability based on the type of disruption and the data available. Participants will learn how to isolate the proper damages period, distinguish between fixed and variable costs, calculate contribution margin versus net income, and determine the proper treatment of mitigation efforts. The course also addresses advanced topics such as discounting future profits to present value using risk-adjusted rates, handling new businesses with limited history, and avoiding common pitfalls like duplicative damage claims or unsupported assumptions.
Through a combination of practical examples, clear modeling steps, and cautionary case studies, the course emphasizes the importance of documentation, transparency, and evidentiary quality. Experts will learn how to present calculations in a way that withstands both courtroom scrutiny and opposing expert challenges. Whether dealing with short-term disruption or long-term impairment, this course provides a blueprint for developing compelling and accurate damage calculations that can influence case outcomes.
How You Will Benefit
After completing this course, attendees will be able to:
- Identify the core calculation methods used in lost profits analysis, including before-and-after, yardstick, and but-for models
- Recognize when contribution margin is more appropriate than net income in quantifying damages
- Determine the appropriate duration of the damages period based on business disruption and recovery
- Analyze the cost structure of a business to differentiate between fixed and variable expenses
- Evaluate how mitigation efforts affect the overall lost profits calculation and must be factored in
- Select appropriate discount rates based on the nature of the projected cash flows, not simply the company’s WACC
- Distinguish high-quality evidence sources for projections and financial support, including tax returns, contracts, and industry data
- Define the evidentiary challenges presented by new or startup businesses lacking historical data
- Differentiate between direct and consequential damages, and avoid duplication in loss claims
- Explain how to construct a clear, logical, and defensible damages model suitable for expert testimony or settlement discussions
This part of the Commercial Damages and Lost Profits course.
Who Should Attend
This course is ideal for professionals involved in financial analysis, business litigation, and dispute resolution. Whether you are an accountant, financial expert, or legal professional, this course will enhance your ability to accurately calculate lost profits in a variety of scenarios. It's particularly valuable for those dealing with business interruptions, unestablished companies, or complex cases where traditional financial data may be scarce. By attending, you will gain the knowledge and skills needed to confidently apply various lost profit methodologies, from the "But For" approach to alternative techniques, and improve your capacity to present and defend these calculations in legal proceedings.
To register, select the date you would like to attend and click the "Register Online" button for our online event registration. Contact Member/Client Services at (800) 677-2009 for questions or registration assistance.
| Virtual Course Schedule |
Early Registration Discounts and Deadlines |
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| Dates | Time | 10% | |||
| May 5, 2026 | 1:00–4:00 p.m. (ET) |
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4/30/2026 | ||
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For additional NASBA sponsorship information, including refund, complaint, and/or program cancelation policies, click here.
