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10 Common Errors in Lost Profits Calculations and Business Damages

 10 Common Errors in Lost Profits Calculations and Business Damages
CPE Credit

Program Type: VideoCast (Audio,Video, PPT Presentation)
Program Level: Intermediate
Prerequisites: Previous training or research on subject matter being taught.
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credits: Two (2) Hours
Fields of Study: Accounting
Item Number: 15PFFHOU1019D
Shipping Weight: 0lbs. 0oz.
Price: $110.00
Program Description

Federal Rules of Evidence (FRE)-702 governs testimony by expert witnesses. Specifically, FRE-702 exists to “weed out” experts giving testimony that: is not necessary, is not based on sufficient facts or data, is not the product of reliable principles and methods, or where the expert has not reliably applied the principles and methods to the facts of the case.

Mistakes happen. Some are forgivable, but there is no place for technical or methodological mistakes by experts. This course reviews 10 major technical and methodological errors in lost profits calculations and business damages analyses that can render an expert's report and testimony useless to the court and possibly inadmissible under FRE-702. Actual case examples are provide where relevant.

Heard of a Daubert Motion? A FRE-702 hearing is where the decision is made to exclude an expert. Don't be that expert. Take this opportunity to learn from others' mistakes.

Learning Objectives

After completing this webinar, attendees will be able to:

- List the top 10 major errors by experts in Lost Profits and Business Damages calculations
- Distinguish between topics subject to professional disagreement and areas subject to limitation of expert opinions under FRE-702
- Identify, in their own analyses and that of opposing experts, areas where technical and/or methodological inconsistencies/errors are most likely to occur
- Differentiate between direct versus consequential damages on an analysis that does not include a "reasonability" test

Who Should Attend

Practitioners who regularly prepare economic lost profits and business damages analyses


Ms. Lari B. Masten focuses her professional time on business valuation, litigation, and consulting services as they apply to both private and public companies. She moved to Denver, Colorado, from Lubbock, Texas, in September of 2000 and has been in public accounting since 1987.

She has performed business valuations, economic damage calculations, purchase price allocations, and goodwill impairment testing for companies operating in a variety of industries including life sciences, personal/professional services, exploration and production of natural resources, manufacturing and distribution processes, real estate development and management, and agriculture-related service sectors.

She has been qualified as an expert witness, and her valuations, lost profits and damages calculations expert witness testimony have been for purposes of marital dissolution, estate and gift tax planning, damages, lost profits, bankruptcy, contract disputes, buy-sell agreements, purchase/sale transactions, goodwill impairment, and related matters.

Ms. Masten has written numerous articles relevant to her areas of expertise. She has been an invited guest speaker for various organizations on topics salient to the organization’s focus that have involved valuation standards compliance, business valuation fundamentals and advanced topics, litigation, estate planning/wealth retention, marital dissolution, and business valuation case analysis. In addition, she is an instructor for the National Association of Certified Valuators and Analysts™ (NACVA®) National Training and Development Team, which presents throughout the country approximately 14 weeks per year. In this capacity, she teaches days four and five of NACVA’s week long Business Valuation Training Center, The Market Approach, Case Analysis, Special Purpose Valuations, and The Valuation Process: Facts to Conclusion. Successful completion of this training center, and the related examination process, results in the participants’ receipt of their business valuation credential.

Ms. Masten served in the elected position of Chairman for NACVA’s Education Quality Assurance Board from 2010–2013, she is a contributing member of the editorial advisor board to National Litigation Consultants’ Review™ and the Journal of Business Valuation and Economic Loss Analysis, and is an officer of the Colorado NACVA State Chapter. Ms. Masten received a Master of Science in Accounting from Texas Tech University in Lubbock, Texas, and is a licensed CPA in the states of Texas and Colorado. She holds the following designations: Accredited in Business Valuation (ABV) and Certified in Financial Forensics (CFF®) through the American Institute of Certified Public Accountants® (AICPA®); and the Certified Valuation Analyst® (CVA®) designation from NACVA.