Choosing Between Lost Profits and Business Valuation in Litigation Assignments

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

	Program Description		Who Should Attend
	How You Will Benefit		Schedule

Program Description
A claim for business damages may be calculated as either lost profits of the business or the lost value of the business. Courts have held that if a business is completely destroyed, the proper total measure of damages is the market value of the business on the date of loss. If the business is not completely destroyed, then the business may recover lost profits. But, a business may not recover lost profits and market value of the business. While this is the well known model for choosing which method to use in business damage litigation, many courts have also said that either methodology (lost profits or business valuation) may be used for assessing the damages to an ongoing business. This course will review the options for choosing one method or the other when determining the appropriate way for assessing business damages. The pros and cons for using each methodology when valuing a business' damages will be considered.

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

• Assess options for calculating economic damages in business litigation
• Determine the methodology which best fits the facts of a particular situation
• Illustrate and defend the choice of methodology used
• Create a plan for assessing damages based on the data available and the method selected
• Recognize options available for calculating business damages
• Calculate business damages based on a methodology that best fits the facts of the case

Take Aways
Attendees will be able to:

• Understand the differences between using business valuation or lost profits for estimating business losses
• Review the claims made by the injured business and the data available, and determine the best method for assessing damages
• Communicate with the hiring attorney and the trier-of-fact the reasons for selecting the method chosen for calculating damages
• Explain why the selected method is the one appropriate for calculating the business damages in a specific litigation

Who Should Attend

Delivery Method Group Internet-Based Program Level Basic Advanced Preparation None Prerequisites Previous training or experience with the fundamentals of accounting, finance, economics, and business writing. These individuals are often at the staff or entry level in organizations, although such programs may also benefit a seasoned professional with limited exposure to the area.    Economics 1 Total CPE Hours   1

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