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Key Qualities of an Effective Expert Witness
Engaging the right expert witness can be pivotal to the success of a case. Expert witnesses are called upon to help the court explain complex material to assist the court in understanding highly technical issues. Lawyers must consider these qualities to ensure that their witness is credible, persuasive, and reliable. The following are the most…
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How to Value: Furniture Stores
Industry Description The furniture stores industry retails household, outdoor and office furniture, excluding goods combined with office supplies and equipment (NAICS 442100). Predominantly retailed are living room, dining room and bedroom furniture, upholstered and otherwise. Also included are desks and home office goods, lamps, recliners, rugs and outdoor furniture. The following are some basic…
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The Basics of Chi-Squared Tests
Background Chi-squared tests can be a powerful tool for lawyers dealing with economic damages in litigation cases. A Chi-Squared Test is a statistical test to determine if there are differences between two populations (i.e., sets of data). Chi-Squared tests are used to test based on categorical data (e.g., gender, race). Other tests are used for…
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Changes to FRE 702
Background: Federal Rules of Evidence 702, commonly referred to as “FRE 702”, governs the admissibility of expert witness testimony. This is the revised text of FRE 702: “A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if the proponent…
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How to Value: Machine Shops
Industry Description The machine shop services industry turns raw materials into specified shapes and sizes using tools such as lathes, milling machines, grinders and drill presses (NAICS 332710). Also included are plastic and composite materials fabricated through machining. The following are some basic characteristics of the machine shop services industry: Industry Trends The industry is…
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The Corporate Transparency Act
What is the Corporate Transparency Act? Passed, in 2021, the Corporate Transparency Act creates new reporting requirements for companies regarding their “Beneficial Owners”, the individuals who directly or indirectly own or control the company. For most companies, this will be simple. For other companies, such as those that have many owners or officers, have a…
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Determining Reasonable Executive Compensation
Background For a wide variety of purposes, including business valuation, assessing minority shareholder claims, and the assessment of payroll and income taxes, it is necessary to consider the reasonableness of executive compensation. This is particularly true when the executive is also the controlling person of the business paying the compensation. Valuation analysists do this as…
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How to Value: Food Service Contractors
Industry Description The food service contractors industry provides food services at institutional, governmental, commercial, or industrial locations (NAICS 722300). Locations where food services are provided include airports, food courts, sports venues, and college and university cafeterias. The following are some basic characteristics of the food service contractors industry: Industry Trends The food service contractors industry…
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Reduce personal injury and wrongful death damages by 50% in one easy step
Consider someone permanently injured or killed in their early 30s that: Undiscounted, that is $4.0 million in damages. Using the “risk-free” rates of today (some of the highest that have been seen in 20+ years), results in a damage payout of approximately $2.8 million. If you instead assume the “risk-free” rates will not stay at…
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Tips for Deposing Financial Experts
The following is practical advice with the benefit of hundreds of depositions. First, a question What is your strategy for this deposition? Will you use this deposition to prepare for trial, or are you instead pursing settlement? Either choice will involve tradeoffs. If you are preparing for trial and wish to keep your cards close…