LOST PROFITS AND ECONOMIC DAMAGES

Economic damages analysis is a core expertise of The BVA Group. Lost profits are very often the requisite or most applicable measure of commercial damages. Other measures of damages may include:

• Lost value
• Unjust enrichment
• Contract damages
• Fraudulent conveyance (bankruptcy)
• Reasonable royalties (intellectual property)

Whether calculating an affirmative damages claim or analyzing such an economic damages calculation by another expert, we apply proven and accepted methodologies and the appropriate standards of proof in assessing damages for lost profits.  Commonly used methods to compute lost profits include the yardstick method and the before-and-after method.  Regardless of methodology, it is incumbent upon the expert to calculate any damages such that they are proven with a reasonable degree of economic certainly.  Such an analysis must be supported by the appropriate research and evidence in addressing each of the following key components of lost profits.

• Estimating lost incremental profits (lost revenues minus incremental costs);
• Properly accounting for economic loss causation;
• Determining the period of loss;
• Estimating an appropriate discount rate; and
• Considering any economic mitigation.

In properly addressing lost profits, it is important that the influence of factors other than the alleged wrongful conduct be removed from any claim for damages.  These are referred to as non-cause-of-action factors.

Our experts are skilled in communications, both verbal and written, and convey highly technical and complex damages analyses in straightforward and understandable terms. When appropriate, we employ the use of demonstrative reports and trial exhibits to assist in relaying our analyses and findings to non-technical individuals. Our experts have testified about lost profits in numerous state and federal district courts, as well as non-litigation venues such as arbitration and mediation.

Our lost profit damages experts are also engaged as consulting experts to assist in analyzing a case during its early stages.  The BVA Group's experts can be utilized in various capacities to assist in a given matter, such as:

• Early case assessment;
• Identifying key financial issues;
• Assessing the magnitude of various financial aspects of a case;
• Analyzing the opposing side's claims;
• Assist in settlement negotiations and mediation;
• Assisting with discovery requests;
• Preparation of expert reports;
• Preparing counsel for deposition and cross examination of opposing side's experts; and
• Providing expert witness testimony

For certain matters, there is a requirement for forensic accounting activities such as verification of accounting records and underlying source documents.  BVA has in-house forensic accounting experts who are available to assist with these needs.