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Lost Profit Cases (Series: Common Commercial Conflicts)

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Business does not always go as planned. When a vendor breaches their contract to supply key parts, a lender reneges on their loan commitment, or a fire decimates a central distribution facility, the impacted business may have grounds to seek compensation in the form of the profits it would have earned had everything just gone smoothly. In order to successfully win (or defend against) any such claim, one must compile and analyze certain types of documents and information, understand and apply appropriate methodologies, and present their case in a manner consistent with that which the court or trier of fact requires. In this webinar, the expert panel discusses the circumstances that warrant lost profits claims, key considerations for both the claimant and defendant, and how such claims will ultimately be evaluated.

To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/lost-profit-cases-2019/

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Lost Profit Cases (Series: Common Commercial Conflicts)

  1. 1. 1
  2. 2. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe Practical and entertaining education for attorneys, accountants, business owners and executives, and investors. 2
  3. 3. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe DISCLAIMER The material in this webinar is for informational purposes only. It should not be considered legal, financial or other professional advice. You should consult with an attorney or other appropriate professional to determine what may be best for your individual needs. While Financial Poise™ takes reasonable steps to ensure the information it publishes is accurate, Financial Poise™ makes no guaranty in this regard. 3
  4. 4. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe MEET THE FACULTY Moderator: Leland Chait – Leland Chait, Esq. Panelists: John Levitske – Ankura Shawn Fox – Sikich LLP Michael D. Pakter – Gould & Pakter Associates LLP 4
  5. 5. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ABOUT THIS WEBINAR: Lost Profit Cases Business does not always go as planned. When a vendor breaches their contract to supply key parts, a lender reneges on their loan commitment, or a fire decimates a central distribution facility, the impacted business may have grounds to seek compensation in the form of the profits it would have earned had everything just gone smoothly. In order to successfully win (or defend against) any such claim, one must compile and analyze certain types of documents and information, understand and apply appropriate methodologies, and present their case in a manner consistent with that which the court or trier of fact requires. In this webinar, the expert panel discusses the circumstances that warrant lost profits claims, key considerations for both the claimant and defendant, and how such claims will ultimately be evaluated. 5
  6. 6. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ABOUT THIS SERIES: Common Commercial Conflicts 2019 This webinar series focuses on the legal and financial realities that accompany unanticipated adverse events, soured business relationships, and failing organizations. Whether you are a general litigator, business owner, aspiring shareholder, or insurance claims analyst, this webinar series will help you to understand and prioritize key concepts associated with business breakups, shareholder disputes, claims for lost profits, and bankruptcy avoidance actions. As with every Financial Poise Webinar, each episode is delivered in Plain English understandable to investors, business owners, and executives without much background in these areas, yet is of primary value to attorneys, accountants, and other seasoned professionals. And, as with every Financial Poise Webinar, each episode brings you into engaging, sometimes humorous, conversations designed to entertain as it teaches. Each episode in the series is designed to be viewed independently of the other episodes so that participants will enhance their knowledge of this area whether they attend one, some, or all episodes. 6
  7. 7. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe EPISODES IN THIS SERIES 2/5/19 Episode #1: Business Breakups 2/26/19 Episode #2: Lost Profit Cases 3/26/19 Episode #3: Resolving Shareholder Disputes 4/23/19 Episode #4: Defending Against Bankruptcy Avoidance Actions 7 Dates shown are premiere dates. All webinars will be available On Demand approximately 4 weeks after they premiere.
  8. 8. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe EPISODE #2: LOST PROFIT CASES 8
  9. 9. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT ARE LOST PROFITS? • Revenues that would have been earned but for the wrongful act (‘but for’ revenues) LESS • Incremental costs necessary to derive these revenues EQUALS • Lost Profits
  10. 10. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT ARE LOST PROFITS? (cont’d) Economic damages caused by disruption of a business. Causes: (1) Breach of contract (2)Liability due to accident or damage to property (3)Intellectual property infringement
  11. 11. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT ARE LOST PROFITS? (cont’d) The factual or “but for” causation showing needed for recovery of lost profits damages -- as with all damages -- requires a plaintiff to prove by a preponderance of the evidence that there is ‘some reasonable connection between the act or omission of the defendant and the damage which the plaintiff has suffered.’ 11
  12. 12. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT ARE LOST PROFITS? (cont’d) • Profits must be shown to have been factually and legally caused by -- and a reasonably foreseeable result of -- the defendant’s wrongful conduct. • Further, a plaintiff must prove his or her estimate of lost profits to a “reasonable certainty,” establishing such damages through an adequate evidentiary foundation. 12
  13. 13. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT IS THE DIFFERENCE BETWEEN LOST PROFITS AND LOST VALUE? • Lost Profits = Incremental profits the company would had have earned but for the wrongful act • Diminution in Value = The present value of lost profits over the life of the company discounted at the appropriate risk adjusted rate of return • How do you decide which analysis to utilize? • When lost profits extend over the life of the company 13
  14. 14. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe STANDARD FOR PROVING LOST PROFITS Tort or Contract must have: • Causation - Some reasonable connection between the act or omission of the defendant and the damage which the plaintiff has suffered. • Reasonable foreseeability – Lost profits must be shown to have been factually and legally caused by the defendant’s wrongful conduct. • Reasonable certainty - Establishing such damages through an adequate evidentiary foundation; applies only to the fact of damages, not to the amount of damages 14
  15. 15. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ESTABLISHED BUSINESSES • Provides evidence of a successful past track record of business, along with evidence establishing anticipated future net profits, offer the greatest likelihood of recovering lost profits • Use expert testimony based upon a solid evidentiary foundation addressing the underlying economic data quantifying gross revenue and variable expenses • May use outside or inside expert testimony 15
  16. 16. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT ABOUT RECENTLY ESTABLISHED OR NEW BUSINESSES? • Most states allow for recovery of lost profits for newly established business; however, the level of scrutiny may be increased. • The New Business Rule (NBR) applies to new businesses as well as new products. However, despite the newness of a given company or enterprise, courts will allow discovery on the lost profits question. The longer the parties’ contractual relationship, the less likely the NBR will defeat a lost profits claim. 16
  17. 17. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT ABOUT RECENTLY ESTABLISHED OR NEW BUSINESSES? (cont’d) • May use alternative forms of proof to establish lost profits, such as industry averages, governmental standards • Must still meet the “reasonable certainty” standard 17
  18. 18. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT ABOUT RECENTLY ESTABLISHED OR NEW BUSINESSES? (cont’d) • Actual Case example: There was a five-year relationship between the wall furnishings manufacturer and designer wall furnishings as well as a multi-year history of contracts the designer had with “big box” retailers . the court held it was premature to dismiss the designer’s counterclaim without allowing the designer to take oral and written discovery to support the damages claim. Williamson Co. v. Ill-Eagle Enterprises, Ltd., 2015 WL 802250, • Damages for lost profits are confined to the period in which it would be reasonable to replace the profits 18
  19. 19. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT ABOUT RECENTLY ESTABLISHED OR NEW BUSINESSES? (cont’d) • The longer the parties’ contractual relationship, the less likely the New Business Rule will defeat a lost profits claim • E.g. Williamson Co. v. Ill-Eagle Enterprises, Ltd., 2015 WL 802250 • AICPA practice aid, “Attaining Reasonable Certainty in Economic Damage Calculations,” includes an entire chapter (chapter 4) on proving damages for newly established businesses. 19
  20. 20. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT ABOUT RECENTLY ESTABLISHED OR NEW BUSINESSES? (cont’d) • Alternative Tools • The Wrongdoer Rule • Lost Opportunity o Loss of Chance Doctrine o Loss of Earnings Opportunity o Loss of Business Opportunity 20
  21. 21. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe GENERAL FLOW OF CALCULATING LOST PROFITS • Understand which lost profits damages model is appropriate • Use evidentiary standards • Calculate lost profits • Develop the causal economic link between defendant’s action (event) and the loss 21
  22. 22. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe GENERAL FLOW OF CALCULATING LOST PROFITS (cont’d) • Select the period to examine • Estimate the relevant lost revenues and associated costs • Utilize assumptions that have reasonable certainty 22
  23. 23. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe LOST PROFIT METHODS • Before-and-After Approach • Yardstick Approach • Sales Projection Approach • Market Share Approach • Alternative methodologies 23
  24. 24. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe BEFORE AND AFTER APPROACH: HISTORICAL DAMAGES WITH FULL RECOVERY 24
  25. 25. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe BEFORE-AND-AFTER APPROACH (cont’d) • Method • Estimate of lost profits based on the plaintiff’s sales (and sales trends) before the damaging event with a projection of sales (based on sales and sales trends) that would have been achieved had the damaging act not occurred (“but for” sales) reduced by incremental costs • Incremental costs: costs that rise and fall with sales; sales fall, have to deduct those costs that decrease because of the sales fall 25
  26. 26. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe BEFORE-AND-AFTER APPROACH (cont’d) • When Appropriate • When reliable historical data exists • When growth trends are steady and predictable • In relatively stable economic environments 26
  27. 27. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe BEFORE AND AFTER APPROACH: HISTORICAL & FUTURE DAMAGES (cont’d) 27
  28. 28. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe BEFORE-AND-AFTER APPROACH (cont’d) • Strengths • Relies on plaintiff’s actual, historical financial results as basis for comparison to estimated future results • Courts often favor financial projections based on past results 28
  29. 29. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe BEFORE-AND-AFTER APPROACH (cont’d) • Limitations • Requires sufficient historical data • May not account for industry changes that occur subsequent to damages date 29
  30. 30. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe BEFORE-AND-AFTER APPROACH (cont’d) Plaintiff Company - Sales 1998 1999 2000 2001 E V E N T 2002 2003 2004 Actual Sales $180,000 $219,000 $262,000 $317,000 $298,000 $295,000 $302,000 Actual Growth Rate 21.70% 19.60% 21.00% -6.00% -1.00% 2.40% Assumed or But For Growth Rate - - - - 21.0% 21.0% 21.0% Projected Sales 380,400 460,240 556,890 Lost Sales - - - - ($82,400) ($165,240) ($254,890) Total Lost Sales ($502,530) 30
  31. 31. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe YARDSTICK APPROACH • Method • Estimate of the plaintiff’s profits based on a yardstick – e.g., a comparable company, division or industry benchmark - that is not affected by the damaging act 31
  32. 32. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe YARDSTICK APPROACH (cont’d) • When Appropriate • When a reliable yardstick exists • With newly established firms • Accounts for differences in time periods • When market conditions may have changed subsequent to the damages event date 32
  33. 33. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe YARDSTICK APPROACH (cont’d) 33
  34. 34. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe YARDSTICK APPROACH (cont’d) • Strengths • Can provide objective, reliable benchmark for estimating • Yardstick is independent of damaging act, but able to reflect its effects • Accounts for changes in the industry or market that may have occurred subsequent to the damages event date 34
  35. 35. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe YARDSTICK APPROACH (cont’d) • Limitations • Lack of comparability between plaintiff and yardstick (e.g., size, sales channels) • Yardstick data may not be available 35
  36. 36. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe MARKET SHARE APPROACH • Method • Calculates lost profits based on the difference between the plaintiff’s “but-for” market share and its market share after the damaging act. • When Appropriate • When reliable market share data exists • When plaintiff company products/services fit within “market” 36
  37. 37. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe MARKET SHARE APPROACH (cont’d) • Strengths • Can provide objective, reliable basis for estimating • Other companies in “market” are independent of damaging act • Accounts for changes in the industry during relevant period • Limitations • Difficult to determine market share – lack of data, comparability • May be difficult to assess due to dynamic markets 37
  38. 38. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe SALES PROJECTION APPROACH • Method • Utilizes company-specific forecasts the company has prepared in the ordinary course of business or for some purpose other than the litigation 38
  39. 39. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe SALES PROJECTION APPROACH (cont’d) • When Appropriate • If plaintiff has prepared the documentation contemporaneously or prior to the occurrence of the alleged harmful event • When projections have been historically reliable • When calculation is for expert who is not engaged by party who has made the projections • If no other approach is reliable 39
  40. 40. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe SALES PROJECTION APPROACH: EXPECTED IMPAIRMENT OF FCFS (cont’d) 40
  41. 41. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe SALES PROJECTION APPROACH (cont’d) • Strengths • May allow the expert to incorporate more easily the effects of other factors (beyond the harmful act) that might increase or decrease the estimated economic damages • Can be very effective if used by expert for party opposing the party who made the projection 41
  42. 42. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe SALES PROJECTION APPROACH (cont’d) • Limitations • Does not control for market events that may have occurred subsequent to the damages event • Difficult to independently support the underlying foundation for the projections • Speculative or nothing more than a “wish list” 42
  43. 43. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ESTIMATING INCREMENTAL COSTS • Costs should only be those costs related to the lost incremental revenues (“Avoidable or incremental Costs”) • Examples of Incremental Costs • Direct costs that change with amounts of sales (materials, commissions, royalties) • Other variable or semi-variable costs Salaries Infrastructure (rent, utilities) 43
  44. 44. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ESTIMATING INCREMENTAL COSTS (cont’d) • Examples of costs that should not be included • Corporate overhead • Other fixed costs (depreciation, amortization) 44
  45. 45. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe EVIDENTIARY SUPPORT • Informed opinion - Lost profits may be established by evidence of past experience or expert testimony sufficient to quantify the extent of loss, either of which must be properly supported by admissible evidence. • Judgmental approximation - Plaintiff's owner provided evidence of the company's past experience and lost profits; owner has substantial experience. 45
  46. 46. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe EVIDENTIARY SUPPORT (cont’d) • Credible evidence – Industry averages, governmental information, official statistics, etc. • IMPORTANT: Must determine how to get this non-company- specific data into evidence. 46
  47. 47. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT EVIDENCE IS NECESSARY? • “The Company’s profits would have been $XXX,XXX, based on…” • Examine financial statements for history • Demand for product • Consistent pricing trends over time 47
  48. 48. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT EVIDENCE IS NECESSARY? (cont’d) • Industry trends over time • Competitive risk is low • Technology risk is low • Customer retention is constant/high 48
  49. 49. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT EVIDENCE IS NECESSARY? (cont’d) • “The risk the Company would NOT achieve $XXX,XXX in profits is very low, based on …” • Customer and product demand • Low risk of product/service obsolescence • Industry trends that support achievability • Backlog orders 49
  50. 50. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT EVIDENCE IS NECESSARY? (cont’d) • “The Company’s profits are now only $X,XXX, due to …” • Customer cancellations of orders or contracts • Lost customer or documented market share • Lost productivity 50
  51. 51. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT EVIDENCE IS NECESSARY? (cont’d) • “The Defendant’s actions are directly responsible for the loss in profits, based on …” • Customers lost as a direct result of the defendant’s actions o Cancellation documentation/letters • Inability to gain new customers o Documentation of futile efforts 51
  52. 52. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT EVIDENCE IS NECESSARY? (cont’d) • “No other factors contributed the Company’s ability to earn $XXX,XXX in profits, as proved by …” • Industry stability • Economic stability • No new competitive entrants into market place • No new governmental or regulatory issues 52
  53. 53. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe QUALIFIED EXPERT • Must be a qualified expert, experienced in field (highly recommend credentialed individual) • Accounting Professional (CPA) • Valuation expert (ASA, ABV, CFA) • Economist 53
  54. 54. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe QUALIFIED EXPERT (cont’d) • Must use proper methodology • Must be objective • Must have sufficient evidentiary support 54
  55. 55. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe DEFENDING AGAINST AN ACTION • What defenses exist to a lost profit action? • What can a party do to challenge the lost profits findings of an expert? 55
  56. 56. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe CONCLUDING THOUGHTS • Applicable standards • Burden of proof • Evidentiary challenges • Remedies • Methodologies • Qualified expert • Other remedies 56
  57. 57. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ABOUT THE FACULTY LELAND CHAIT – LelandChait@gmail.com Lee is an experienced litigator and counselor who represents individuals, investors, families, and businesses ranging from partnerships and LLCs to medium-sized enterprises to the world’s largest financial services institutions. He has successfully handled disputes in state and federal courts and arbitrations throughout the United States alleging fraud and violations of duties owed to partners, shareholders, employees, customers, and the public; violation of employment and anti-discrimination laws; antitrust laws; industry regulations; and cyber insurance contracts. Lee is Vice-Chair of the Excess, Surplus Lines & Reinsurance Committee and the Corporate Counsel Committee of the American Bar Association’s Tort Trial and Insurance Practice Section. 5 7
  58. 58. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ABOUT THE FACULTY JOHN LEVITSKE – John.Levitske@ankura.com John Levitske is a Senior Managing Director at Ankura, focused on business valuation and complex financial disputes. He has served as a senior advisor to companies, owners, executives, and legal counsel in business disputes, shareholder disputes, and M&A transactions regarding issues of valuation, finance, damages, and accounting. John is based in Chicago. With over 30 years of experience, including two decades of Big Four public accounting and international consulting experience, John is seasoned in business valuation, financial analysis, economic damage quantification, forensic accounting, retrospective solvency analysis, and post-merger and acquisition accounting calculations. He is experienced in the appraisal of healthy and distressed companies for buyouts of shareholders and creditors, transaction planning, estate and gift taxation, financial accounting, bankruptcy proceedings, and litigation disputes. His experience includes numerous valuation dispute cases in US litigation, arbitration, and medication, plus international arbitration. John has provided consulting and expert witness testimony services and has served as a neutral party in arbitration and mediation. He has testified as an expert witness in the US and Europe in depositions, hearings, bench and jury court trials, and domestic and international arbitration (ICC, SCC, AAA, JAMS, FINRA, and ad hoc arbitrations) and has served as a neutral arbitrator. In addition, he has rendered binding decisions on disputed matters. He is co-author of the “Managing Post-Merger & Acquisition Purchase Price Disputes” chapter in the American Bar Association’s 2016 Alternative Dispute Resolution Handbook for Business Lawyers. John has lectured on valuation, financial analysis, and forensic accounting topics to various professional groups, including the American Bar Association, the Chicago Bar Association, the Association of Insolvency & Reorganization Advisors, and DailyDAC-Financial Poise. In addition, he served as an accounting, finance, and auditing adjunct professor at both the University of Pittsburgh and Point Park University, and as a national exam question writer for both the Uniform CPA Exam and the American Institute of Certified Public Accountants’ Accredited in Business Valuation Exam. 5 8
  59. 59. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ABOUT THE FACULTY SHAWN FOX– Shawn.Fox@Sikich.com Effective as of January 1, 2019, Shawn Fox was promoted to the national managing director of Sikich’s forensic and valuation services practice. He is based in the Chicago office. He has 22 years of experience providing fraud and forensic accounting, dispute advisory, and valuation services to the business and legal community involved in high profile disputes and investigations. With significant experience in the preparation of expert reports, Shawn assists clients in all phases of complex litigation, including case assessments, discovery, document review, damages analysis, complex modeling, and demonstrative exhibits. He has testified in almost 50 different cases at deposition, trial, and arbitration as an expert witness and has served as a court-appointed receiver. Shawn has been qualified as an expert witness in federal district and bankruptcy courts and state courts across the U.S. Shawn is also retained as a consultant to quantify the potential damages or exposures in disputed matters. Shawn directs forensic investigations and analysis across a wide range of areas, including high-stakes litigation, complex damages, lost profits, unjust enrichment, economic damages, diminution of value, reasonable royalty, intellectual property infringement, bad faith, breach of contract, breach of fiduciary duty, misappropriation of trade secrets, tortious interference, securities, fraud, purchase price disputes/post-acquisition disputes, class action, and bankruptcy litigation, as well as valuation and insurance claims recoveries. 5 9
  60. 60. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ABOUT THE FACULTY MICHAEL D. PAKTER – mpakter@litcpa.com Michael D. Pakter has more than 40 years of experience in accounting and forensic accounting, business economics and investigations in numerous industries and diverse engagements, including more than 20 years of experience in economic damages and business valuations. He has submitted expert reports in several jurisdictions and testified in arbitrations, regulatory proceedings and litigated disputes. State, Federal and Bankruptcy Courts, as well as arbitral bodies, have recognized him as an expert in accounting, financial analysis, forensic accounting, economic damages, business valuation and business economics. Mr. Pakter is a Certified Public Accountant, registered in the State of Illinois. The AICPA has recognized him as additionally Certified in Financial Forensics and Management Accounting. He earned the NACVA Certified Valuation Analyst designation having completed its business valuation specialty program and its Master Analyst in Financial Forensics designation having completed its business and intellectual property damages specialty program. The Association of Insolvency and Restructuring Advisors has awarded him its Certified Insolvency and Restructuring Advisor and its Certification in Distressed Business Valuation. He is a Certified Fraud Examiner and a Chartered Accountant with undergraduate academic education in accounting, auditing, commerce and business economics. 6 0
  61. 61. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe QUESTIONS OR COMMENTS? If you have any questions about this webinar that you did not get to ask during the live premiere, or if you are watching this webinar On Demand, please do not hesitate to email us at info@financialpoise.com with any questions or comments you may have. Please include the name of the webinar in your email and we will do our best to provide a timely response. IMPORTANT NOTE: The material in this presentation is for general educational purposes only. It has been prepared primarily for attorneys and accountants for use in the pursuit of their continuing legal education and continuing professional education. 6 1
  62. 62. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ABOUT FINANCIAL POISE DailyDAC LLC, d/b/a Financial Poise™ provides continuing education to attorneys, accountants, business owners and executives, and investors. Its websites, webinars, and books provide Plain English, entertaining, explanations about legal, financial, and other subjects of interest to these audiences. Visit us at www.financialpoise.com. 6 2 Our free weekly newsletter, Financial Poise Weekly, educates readers about business, business law, finance, and investing. To receive it simply add yourself by going to: https://www.financialpoise.com/newsletter/ Email addresses are never sold to or shared with third parties.

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