{"product_id":"measuring-business-interruption-losses-and-other-commercial-damages-isbn-9781119647911","title":"Measuring Business Interruption Losses and Other Commercial Damages","description":"\u003cp\u003e\u003cb\u003eMeasure business interruption losses with confidence\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eYou hope for the best and plan for the worst. It’s your job. But when the unimaginable happens, are you truly prepared for those business interruption losses?\u003c\/p\u003e \u003cp\u003e\u003ci\u003eMeasuring Business Interruption Losses and Other Commercial Damages \u003c\/i\u003eis the only book in the field that explains the complicated process of measuring business interruption damages after you’ve been hit by the unexpected, whether the losses are from natural or man-made disasters, or whether the performance of one company adversely affects the performance of another.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eUnderstand the methodology for how lost profits should be measured\u003c\/li\u003e \u003cli\u003eDeal with the many common types of cases in business interruption lawsuits in commercial litigation\u003c\/li\u003e \u003cli\u003eTake a look at exhibits, tables, and graphs\u003c\/li\u003e \u003cli\u003eBenefit from updated data, case studies, and case law references\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eDon’t get caught off guard. Get ahead of planning for measuring your interruption losses before disaster strikes.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDevelopment of the Field of Litigation Economics 2\u003c\/p\u003e \u003cp\u003eDevelopment of the Field of Forensic Accounting 3\u003c\/p\u003e \u003cp\u003eQualifications of an Economic Expert 5\u003c\/p\u003e \u003cp\u003eQualifications of an Accounting Expert on Damages 8\u003c\/p\u003e \u003cp\u003eInterdisciplinary Nature of Commercial Damages Analysis 8\u003c\/p\u003e \u003cp\u003eDifference Between Disciplines of Economics and Finance 10\u003c\/p\u003e \u003cp\u003eFinding a Damages Expert 11\u003c\/p\u003e \u003cp\u003eCritically Reviewing a Potential Expert’s Curriculum Vitae 12\u003c\/p\u003e \u003cp\u003eGetting the Damages Expert on Board Early Enough 18\u003c\/p\u003e \u003cp\u003eCourts’ Position on Experts on Economic Damages 19\u003c\/p\u003e \u003cp\u003eStandards for Admissibility of Expert Testimony 21\u003c\/p\u003e \u003cp\u003eExclusion of Experts 25\u003c\/p\u003e \u003cp\u003eTrends in \u003ci\u003eDaubert \u003c\/i\u003eChallenges to Financial Experts 25\u003c\/p\u003e \u003cp\u003eExpert Reports 28\u003c\/p\u003e \u003cp\u003eDefense Expert as a Testifying Expert, Not Just a Consultant 33\u003c\/p\u003e \u003cp\u003eQuantitative Research Evidence on the Benefits of Calling a Defense Expert 35\u003c\/p\u003e \u003cp\u003eTreatment of the Relevant Case Law 36\u003c\/p\u003e \u003cp\u003eLegal Damage Principles 36\u003c\/p\u003e \u003cp\u003eOther Types of Damages Cases 42\u003c\/p\u003e \u003cp\u003eSummary 46\u003c\/p\u003e \u003cp\u003eReferences 46\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Economic Framework for the Lost Profits Estimation Process 51\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFoundation for Damages Testimony 51\u003c\/p\u003e \u003cp\u003eRole of Assumptions in Damages Analysis 52\u003c\/p\u003e \u003cp\u003eHearsay 53\u003c\/p\u003e \u003cp\u003eApproaches to Proving Damages 55\u003c\/p\u003e \u003cp\u003eCausality and Damages 59\u003c\/p\u003e \u003cp\u003eUsing Demonstrative Evidence to Help the Client Understand Its Losses or Lack of Losses 67\u003c\/p\u003e \u003cp\u003eCausality and Loss of Customers 68\u003c\/p\u003e \u003cp\u003eGraphical Sales Analysis and Causality 69\u003c\/p\u003e \u003cp\u003eCausality and the Special Case of Damages Resulting from Adverse Publicity 71\u003c\/p\u003e \u003cp\u003eLength of Loss Period: Business Interruption Case 72\u003c\/p\u003e \u003cp\u003eLength of Loss Period: Plaintiff Goes Out of Business 77\u003c\/p\u003e \u003cp\u003eLength of Loss Period: Breach of Contract 78\u003c\/p\u003e \u003cp\u003eMethodological Framework 79\u003c\/p\u003e \u003cp\u003eSummary 82\u003c\/p\u003e \u003cp\u003eReferences 83\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Economic Analysis in Business Interruption Loss Analysis 85\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEconomic Fluctuations and the Volume of Litigation 85\u003c\/p\u003e \u003cp\u003eMacroeconomic Analysis 86\u003c\/p\u003e \u003cp\u003eDefinition of a Recession 86\u003c\/p\u003e \u003cp\u003eMeasuring Economic Growth and Performance 87\u003c\/p\u003e \u003cp\u003eBusiness Cycles and the Movement of GDP Components 90\u003c\/p\u003e \u003cp\u003eBusiness Cycles and Economic Damages 95\u003c\/p\u003e \u003cp\u003eVarying Responses to Business Cycles Across Industries 97\u003c\/p\u003e \u003cp\u003eUsing More Narrowly Defined Economic Aggregates 99\u003c\/p\u003e \u003cp\u003eQuantifying the Strength of the Relationship Between Selected Economic Aggregates and Firm Performance 101\u003c\/p\u003e \u003cp\u003eImplementing Inflationary Adjustments 104\u003c\/p\u003e \u003cp\u003eRegional Economic Trends 108\u003c\/p\u003e \u003cp\u003eQuality and Timeliness of Regional Economic Data 109\u003c\/p\u003e \u003cp\u003eInternational Economic Analysis 111\u003c\/p\u003e \u003cp\u003eGlobalization of Supply and Demand 113\u003c\/p\u003e \u003cp\u003eSummary 115\u003c\/p\u003e \u003cp\u003eReferences 116\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Industry Analysis 119\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSources of Industry Data 119\u003c\/p\u003e \u003cp\u003eNorth American Industry Classification System 125\u003c\/p\u003e \u003cp\u003eRetaining an Industry Expert 132\u003c\/p\u003e \u003cp\u003eConducting an Industry Analysis 133\u003c\/p\u003e \u003cp\u003eRelating Industry Growth to the Plaintiff’s Growth 136\u003c\/p\u003e \u003cp\u003eOther Industry Factors 138\u003c\/p\u003e \u003cp\u003eYardstick Approach and Industry Analysis 141\u003c\/p\u003e \u003cp\u003eSummary 144\u003c\/p\u003e \u003cp\u003eReferences 145\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Projecting Lost Revenues 147\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eProjections Versus Forecasts: Economic Versus Accounting Terminology 147\u003c\/p\u003e \u003cp\u003eUsing Graphical Analysis as an Aid in the Forecasting Process 148\u003c\/p\u003e \u003cp\u003eMethods of Projecting Lost Revenues 153\u003c\/p\u003e \u003cp\u003eCurve‐Fitting Methods and Econometric Models 158\u003c\/p\u003e \u003cp\u003eUnderstanding Regression Output and Diagnostics 161\u003c\/p\u003e \u003cp\u003eCommon Problems Affecting Regression Models 162\u003c\/p\u003e \u003cp\u003eConfidence in Forecasted Values 167\u003c\/p\u003e \u003cp\u003eFrequency of the Use of Econometric Techniques in Commercial Litigation 169\u003c\/p\u003e \u003cp\u003eSeasonality and the Forecasting Process 177\u003c\/p\u003e \u003cp\u003eCapacity Constraints and Forecasts 179\u003c\/p\u003e \u003cp\u003eSensibility Check for the Forecasted Values 180\u003c\/p\u003e \u003cp\u003eProjecting Lost Sales for a New Business 181\u003c\/p\u003e \u003cp\u003eProjecting Losses for an Unestablished Business 186\u003c\/p\u003e \u003cp\u003eSummary 188\u003c\/p\u003e \u003cp\u003eAppendix 189\u003c\/p\u003e \u003cp\u003eReferences 197\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Cost Analysis and Profitability 199\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePresentation of Costs on the Company’s Financial Statements 200\u003c\/p\u003e \u003cp\u003eMeasures of Costs 201\u003c\/p\u003e \u003cp\u003eProfit Margins and Profitability 201\u003c\/p\u003e \u003cp\u003eAppropriate Measure of Profitability for a Lost Profits Analysis 202\u003c\/p\u003e \u003cp\u003eBurden of Proof for Demonstrating Costs 206\u003c\/p\u003e \u003cp\u003eFixed Versus Variable Costs 207\u003c\/p\u003e \u003cp\u003eUsing Regression Analysis to Estimate Costs as Opposed to More Basic Methods 212\u003c\/p\u003e \u003cp\u003ePitfalls of Using Regression Analysis to Measure Incremental Costs 212\u003c\/p\u003e \u003cp\u003ePossible Nonlinear Nature of Total Costs 213\u003c\/p\u003e \u003cp\u003eLimitations of Using Unadjusted Accounting Data for Measuring Incremental Costs 217\u003c\/p\u003e \u003cp\u003eTreatment of Overhead Costs 220\u003c\/p\u003e \u003cp\u003eMust a Plaintiff Be a Profitable Business to Recover Damages? 224\u003c\/p\u003e \u003cp\u003eMitigation of Damages 225\u003c\/p\u003e \u003cp\u003eCash Flows Versus Net Income: Effects on the Discounting Process 230\u003c\/p\u003e \u003cp\u003eRecasted Profits 232\u003c\/p\u003e \u003cp\u003eFirm‐Specific Financial Analysis 238\u003c\/p\u003e \u003cp\u003eCross‐Sectional Versus Time Series Analysis 240\u003c\/p\u003e \u003cp\u003eSummary 240\u003c\/p\u003e \u003cp\u003eReferences 241\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Time Value of Money Considerations 245\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDetermination of Interest Rates 246\u003c\/p\u003e \u003cp\u003eTypes of Interest Rates 246\u003c\/p\u003e \u003cp\u003eFinancial Markets: Money Market Versus Capital Market 247\u003c\/p\u003e \u003cp\u003eMoney Market Securities and Interest Rates 247\u003c\/p\u003e \u003cp\u003eCapital Market 249\u003c\/p\u003e \u003cp\u003eReal Versus Nominal Interest Rates 250\u003c\/p\u003e \u003cp\u003eDeterminants of Interest Rates 255\u003c\/p\u003e \u003cp\u003ePrejudgment Losses 261\u003c\/p\u003e \u003cp\u003eComponents of the Cost of Capital 263\u003c\/p\u003e \u003cp\u003eDiscounting Projected Future Profits 269\u003c\/p\u003e \u003cp\u003eShould the Risk‐Free Rate Be Normalized? 272\u003c\/p\u003e \u003cp\u003eCommon Errors Made in Discounting by Damages “Experts” 276\u003c\/p\u003e \u003cp\u003eSummary 282\u003c\/p\u003e \u003cp\u003eReferences 283\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Business Valuations 287\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLegal Standard for Business Valuations in Business Interruption and Business Failure Lawsuits 287\u003c\/p\u003e \u003cp\u003eLost Profits Versus Lost Business Value 290\u003c\/p\u003e \u003cp\u003eBusiness Valuation Framework 292\u003c\/p\u003e \u003cp\u003ePublic Versus Private Companies 293\u003c\/p\u003e \u003cp\u003eBusiness Valuation Parameters 294\u003c\/p\u003e \u003cp\u003eRevenue Ruling 59–60 and Factors to Consider in Valuation 294\u003c\/p\u003e \u003cp\u003eValuation Concepts 298\u003c\/p\u003e \u003cp\u003eCapitalization of Earnings 304\u003c\/p\u003e \u003cp\u003eAdjustments and Discounts 308\u003c\/p\u003e \u003cp\u003eSummary 314\u003c\/p\u003e \u003cp\u003eReferences 316\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Intellectual Property 319\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePatents 319\u003c\/p\u003e \u003cp\u003eComputation of Damages for Patent Infringement 325\u003c\/p\u003e \u003cp\u003eLegal Requirements Necessary to Prove Lost Profits 325\u003c\/p\u003e \u003cp\u003eRoyalty Arrangements 333\u003c\/p\u003e \u003cp\u003eCopyrights 341\u003c\/p\u003e \u003cp\u003eMeasurement of Damages for Copyright Infringement 344\u003c\/p\u003e \u003cp\u003eTrademarks 347\u003c\/p\u003e \u003cp\u003eTrade Secrets 352\u003c\/p\u003e \u003cp\u003eSummary 355\u003c\/p\u003e \u003cp\u003eReferences 357\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Securities‐Related Damages 361\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eKey Securities Laws 361\u003c\/p\u003e \u003cp\u003eDamages in Securities Litigation 366\u003c\/p\u003e \u003cp\u003eFraud‐on‐the‐Market 367\u003c\/p\u003e \u003cp\u003eComparable Index Approach 380\u003c\/p\u003e \u003cp\u003eEvent Study Approach 383\u003c\/p\u003e \u003cp\u003eExamining the Variation in Abnormal Returns 386\u003c\/p\u003e \u003cp\u003eLimitations of the Event Study Model 391\u003c\/p\u003e \u003cp\u003eBroker Raiding Cases 394\u003c\/p\u003e \u003cp\u003eMerger‐Related Damages 400\u003c\/p\u003e \u003cp\u003eHistory of Mergers in the United States 400\u003c\/p\u003e \u003cp\u003eClient‐Broker Claims 405\u003c\/p\u003e \u003cp\u003eChurning 407\u003c\/p\u003e \u003cp\u003eReferences 415\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Antitrust 419\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAntitrust Laws 421\u003c\/p\u003e \u003cp\u003eAntitrust Enforcement 423\u003c\/p\u003e \u003cp\u003eEconomics of Monopoly 425\u003c\/p\u003e \u003cp\u003eInterpretation of Antitrust Violations: Structure Versus Conduct 429\u003c\/p\u003e \u003cp\u003eChanging Pattern of Antitrust Enforcement 429\u003c\/p\u003e \u003cp\u003eAntitrust and the New Economy 434\u003c\/p\u003e \u003cp\u003eMonopolization and Attempts at Monopolization 436\u003c\/p\u003e \u003cp\u003eMarket Definition and Microeconomic Analysis 440\u003c\/p\u003e \u003cp\u003eMarket Power 440\u003c\/p\u003e \u003cp\u003eMeasures of Market Concentration 442\u003c\/p\u003e \u003cp\u003eAreeda and Turner’s Marginal Cost Rule of Predatory Pricing 452\u003c\/p\u003e \u003cp\u003eSummary 461\u003c\/p\u003e \u003cp\u003eReferences 462\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Economics of Punitive Damages 467\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEvolving Position of the U.S. Supreme Court on Punitive Damages 467\u003c\/p\u003e \u003cp\u003eFrequency of Punitive Damages 470\u003c\/p\u003e \u003cp\u003eFrequency of Punitive Damages and the Shadow Effect of Punitive Damages 471\u003c\/p\u003e \u003cp\u003ePurposes of Punitive Damages 473\u003c\/p\u003e \u003cp\u003eCompensatory Versus Punitive Damages 474\u003c\/p\u003e \u003cp\u003eCriminal Penalties and Punitive Damages in Civil Lawsuits 475\u003c\/p\u003e \u003cp\u003ePunishment of Corporations and Corporate Governance 475\u003c\/p\u003e \u003cp\u003eSpillover Effects and Punishment of Corporations 476\u003c\/p\u003e \u003cp\u003eDeterrence Theory and the Changing Litigation Environment 487\u003c\/p\u003e \u003cp\u003eDeterrence and Regulatory Processes 490\u003c\/p\u003e \u003cp\u003eTypical Financial Measures Used in the Determination of Punitive Damages 493\u003c\/p\u003e \u003cp\u003eNet Worth 494\u003c\/p\u003e \u003cp\u003eMarket Capitalization 497\u003c\/p\u003e \u003cp\u003eUncertain Litigation Environment 503\u003c\/p\u003e \u003cp\u003eSummary 508\u003c\/p\u003e \u003cp\u003eReferences 508\u003c\/p\u003e \u003cp\u003eIndex 513\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eDR. PATRICK A. GAUGHAN\u003c\/b\u003e is President of Economatrix Research Associates, an economic and financial consulting firm specializing in the application of economics and finance to litigated matters. Dr. Gaughan provides various consulting services in the field of litigation economics and finance as well as mergers and acquisitions. He is often called upon to serve as an expert witness in lawsuits and other litigated matters.   \u003c\/p\u003e\u003cp\u003eComputing damages in business interruption cases requires thorough knowledge of the research and practices in diverse areas of expertise, such as general and forensic accounting, litigation economics, and business law. The \u003ci\u003eThird Edition\u003c\/i\u003e of \u003ci\u003eMeasuring Business Interruption Losses and Other Commercial Damages\u003c\/i\u003e provides a detailed methodological framework for measuring lost profits for the purpose of determining damages in business interruption lawsuits and related types of commercial damages. Written by a leading expert in applying economics and finance to litigation, this authoritative volume examines every critical aspect of commercial damages analysis. \u003c\/p\u003e\u003cp\u003eDesigned for practical use, this book enables you to quickly find information on a specific topic without needing to read the entire volume—nor does it require that you complete preceding chapters to understand your selected reading. Divided into two parts, this reliable resource first provides deep coverage of business interruption damage analysis, including the lost-profits estimation process and time-value of money considerations. Part Two examines intellectual property, securities-related damages, antitrust damages, and various other types of common commercial damages. \u003c\/p\u003e\u003cp\u003eCorrectly measuring commercial damages involves a broad range of interdisciplinary knowledge. Accountants, for example, will find the book's economic topics highly useful. Acknowledging that few readers are experts in every discipline, the author provides accessible overviews of specialized topics throughout the text. This book emphasizes the important role that economics plays in damages calculations. Experts are given a thorough demonstration of the key roles that macroeconomics, microeconomics, and finance plays in commercial damages analysis. This knowledge is invaluable for experts who testify in commercial lawsuits. \u003c\/p\u003e\u003cp\u003e\u003ci\u003eMeasuring Business Interruption Losses and Other Commercial Damages: An Economic Approach, Third Edition\u003c\/i\u003e is an indispensable resource for anyone working in the field of commercial damages, offering invaluable guidance on the vital economics issues that are relevant to so many different types of cases.   \u003c\/p\u003e\u003cp\u003e\u003cb\u003eThe only book that explains the methodology for measuring lost profits in litigation, fully updated and revised\u003c\/b\u003e  \u003c\/p\u003e\u003cp\u003e\u003ci\u003eMeasuring Business Interruption Losses and Other Commercial Damages\u003c\/i\u003e has been the go-to resource for economists, accountants, and attorneys involved in lawsuits or serving as expert witnesses for nearly two decades. This new edition remains the definitive book in the field, demystifying the complex process of measuring lost profits and damages in litigation. Author Patrick A. Gaughan, a respected economic and financial consultant who specializes in litigated matters, offers authoritative guidance on measuring damages in business interruption and breach of contract cases as well as intellectual property, securities and antitrust lawsuits. \u003c\/p\u003e\u003cp\u003eProviding a step-by-step framework for determining damages in a range of real-world scenarios, this comprehensive volume covers areas such as equity risk premium analysis, lost revenue projections, cost and profitability analysis, and the economics of punitive damages. A wealth of exhibits, tables, graphs, case studies, and references ensures that readers thoroughly understand each essential topic. Now in its \u003ci\u003eThird Edition\u003c\/i\u003e, this market-leading text features new and revised content in every chapter that reflects recent developments in the fields of economics and finance and changes in relevant case law.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989593735397,"sku":"NP9781119647911","price":160.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119647911.jpg?v=1761784733","url":"https:\/\/k12savings.com\/products\/measuring-business-interruption-losses-and-other-commercial-damages-isbn-9781119647911","provider":"K12savings","version":"1.0","type":"link"}