Archive 2023-180: Two-Part Presentation: Alternative Methodologies for Lost Profits Damages & Ex Ante v. Ex Post

VPS StraightTalk Webinar Series: Two-Part Presentation: Alternative Methodologies for Lost Profits Damages & Ex Ante v. Ex Post

Speakers: Brian Brinig, JD, CPA, ASA and Peter Schulman, CPA, CIRA, CDBV

Alternative Methodologies for Lost Profits Damages
This presentation highlights alternative approaches for estimating but-for financial activity: the yardstick approach; the before-and-after approach; sales projection approach; and market share approach. The strengths and weaknesses of each methodology will be explained. The financial expert’s role in causation will be discussed as well as a comparison of risk-free and risk-adjusted discount rates to business damages analyses.

Learning Objectives:
In this webinar, the participants will learn:

• To understand the difference between the four approaches and their relative strengths and weaknesses
• When the application of each approach is appropriate, and inappropriate
• How the financial expert witness can assist in the issue of causation
• The conceptually appropriate approach to discounting future lost profits in business damages analyses

Ex Ante v. Ex Post
Lost profits damages can be determined as of the date of injury or the date of trial, sometimes referred to as ex ante and ex post approaches. Lost profits determinations under the ex ante and ex post approaches include consideration of (1) events subsequent to the date of the violation, (2) discounting lost future profits to present value, (3) prejudgment interest and (4) accounting for risk.
Risk assessments in substantially all economic damages cases is a hot-button topic. This presentation explores alternative approaches to risk assessments in damage models, including a new concept, the “Parity Model.”

Learning Objectives:
In this webinar, the participants will learn about:

• The origins of ex ante and ex post concepts, and their application in economic damages litigation
• An introduction and explanation of the “Parity Model” in Chapter 3 of Lost Profits Damages: Principles, Methods, and Applications, 2nd Edition
• How to synthesize the following concepts: (1) Ex Ante & Ex Post, (2) Discounting, (3) Prejudgment Interest (“PJI”), (4) the Parity Model; (5) accounting for risk in damage determinations
• Practice tips for lost profits damages litigation

Handouts