Estimating Lost Profits for Businesses Owned by the Self-Employed

Co-Sponsored by the National Association of Certified Valuators and Analysts®  (NACVA®) 

	Program Description		Who Should Attend
	How You Will Benefit		Schedule

Program Description
Financial experts will often be asked to estimate the lost earnings or lost earning capacity for an injured self-employed person. This type of analysis often begs the question, “For the self-employed, what are lost earnings and what are lost profits?” In an injury matter, it is the individual (the self-employed person) who is seeking recovery of lost wages. In a lost profits matter, the entity seeking recovery of the lost profits is the business itself. In this litigation, the self-employed person will, more than likely, be the representative of the business, but it is the business that has been injured and the business that will receive payment for the loss of profits. This course discusses how to separate the lost profits for the business from the self-employed person’s earnings.

How You Will Benefit
After completing this course, attendees will be able to:

• Evaluate the difference between lost earnings and lost profits for a self-employed person
• Analyze business financial records to separate self-employed earnings from business profits
• Assess the facts of the specific assignment to determine if lost profits that were separate from the owner's earnings existed
• Calculate a self-employed person's business lost profits
• Design the appropriate method for discounting future lost profits to present value
• Describe in a written report or testimony the methodology and approaches used for assessing the lost profits

Take Aways
This course provides an overview for assessing the calculation of lost profits for self-employed businesses. It will review court decisions defining the differences between self-employed persons' lost earnings and the businesses' lost profits. Examples will review analyses of Schedule C businesses and subchapter S corporations. These examples will show how the definitions provided by various courts may be applied when calculating lost profits for these types of businesses.

Who Should Attend

Delivery Method Group Internet-Based Program Level Overview Advanced Preparation None Prerequisites None   Economics 1 Total CPE Hours   1

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