Eric Madsen

Transcription

1 Fulcrum Financial Inquiry LLP 888 S. Figueroa Street, Suite 2000 Los Angeles, CA (213) Eric Madsen SUMMARY Mr. Madsen s work involves business valuations, calculations of economic loss, and analysis of large financial databases on behalf of companies from various industries. Mr. Madsen s financial analysis has proven useful to company executives seeking sale of a business or operating division, as part of contract negotiations, and in litigation settings involving complex and highstakes financial disputes. His calculations of economic loss typically involve intellectual property disputes (patent, copyright, or trademark infringement), breaches of contract, antitrust claims, lost business value associated with personal injury or wrongful death claims, and disputes that involve labor and employment issues. LICENSES & CERTIFICATIONS Chartered Financial Analyst (CFA) charterholder, CFA Institute EDUCATION Masters of Business Administration (MBA), UCLA Anderson School of Management, Los Angeles, California Bachelor of Science, Economics, Summa Cum Laude, Brigham Young University, Provo, Utah EMPLOYMENT Fulcrum Financial Inquiry LLP; 2008 present LECG, LLC; REPRESENTATIVE ENGAGEMENTS Prepared reports, trial presentations, or other analysis as part of the following engagements: Valuation Appraised a privately held resort and winery located in Napa Valley, California as part of a litigated dispute between owners seeking to resolve conflicting management approaches through a buyout. The operation s major assets included a hotel, caves for wine storage, and vineyard land. [R33] Performed a valuation of a non-profit college that offered programs in the medical field to assist the parent company's preparations to sell the college. [R85] Eric Madsen - Page 1 Updated September 2013

2 Assessed an investment bank's valuation of a takeover target; a shareholder lawsuit alleged the acquirer a publicly traded, international media company vastly overpaid by several hundred million dollars for a television and film production company, bringing the investment bank's valuation into question. Conducted a valuation of the takeover target to determine the appropriate transaction value. [R55] Valued a niche soda-pop manufacturer as part of a dispute between owners that sought to resolve management differences through one party s buy-out of the other party s ownership interest. [R29] Appraised a high-end car dealership located in San Francisco Bay Area to assist a long-standing owner s buyout of another owner who inherited a significant portion of company shares through her deceased husband. [R26] Valued the operating assets of a Major League Baseball team as part of litigation that challenged the team's ability to sell its media rights in an open auction. Developed a financial model to estimate how the team's value would be affected if the team did not honor a network's "rights of first refusal" and "rights of first negotiation" clauses contained in its media rights contract. [R65] Appraised the U.S. distribution arm of a Japanese company that manufactures matcha green tea. [R46] Valued the effects of groundwater contamination on residential property values using real estate transaction data and regression analysis in several class action matters that pitted home owners against manufacturing companies allegedly responsible for the groundwater contamination. This assignment included a critique of analysis put forth by opposing experts who relied upon traditional methods of real estate appraisal. [R10] Valued products sold by a multi-level marketing company as part of a matter arising from the Federal Trade Commission's allegation that the company operated as an illegal pyramid scheme. [R13] Advised a start-up company in a valuation and sale of its patent. Estimated the patent s value using discounted cash flows analysis. Performed research to identify the profit-maximizing consumer market and pinpoint likely purchasers of the patent. [R9] Conducted research to assist with valuing an art seller's retail location (locational goodwill) to determine what would be reasonably paid in an eminent domain proceeding for value lost by having to vacate the seller s longstanding premises. [R89] Appraised a company that sells health products under a widely recognized licensed brand. Appraisal performed on behalf of a claimed 20% shareholder whose ownership interest was unrecognized by other owners of the company. [R81] Performed valuation of a precious metals mining company. Valuation provided as part of a dispute over the accuracy of the accounting records provided in the due diligence phase of the transaction and estimated what the purchase price would have been had the accounting records been properly stated. [R68] Estimated business profits due to a business owner who allegedly was wrongfully forced out of a position of ownership and control from a business he founded. Profit estimations necessary because business refused production of financial documents needed for a more precise calculation. [R83] Assessed a company's dividend distribution patterns and liquid asset levels to determine whether the company maintained appropriate or excessive amounts of cash. Analysis was used as part of litigation between owners of a large and privately-held beverage company. [R57] Eric Madsen - Page 2 Updated September 2013

3 Lost business value/income arising from personal injury or wrongful death Calculated economic damages arising from alleged medical malpractice and personal injury. Economic damages included (i) injured party's lost income, benefits, and household services and (ii) lost profits from a chain of high-end beauty salons that attributed failure of an ambitious expansion plan to the injury. [R80] Calculated economic damages in a case involving the wrongful death (medical malpractice) of a jewelry store and gift shop owner and operator. Damages included business lost profits associated with the owner's death. [R78] Calculated economic damages in a personal injury matter (medical malpractice) involving a plaintiff who allegedly lost a business opportunity on account of the injury. Damages entailed an assessment of the business opportunity's profitability prospects. [R75] Calculated damages in a claim of alleged medical malpractice that would likely result in the victim s premature death; the victim was a highly successful real estate agent in Hollywood, California who specialized in sales of high-end properties; assessed how past and predicted real estate market conditions would have affected the agent s earnings had her professional work continued. [R14] Identified alternative explanations for a steep sales decline of a formerly highly successful lighting business whose 50% owner/operator lost sight in one eye as a result of alleged medical malpractice. Calculated economic damages related to the alleged malpractice. [R39] Calculated economic damages due to wrongful death or personal injury in a series of matters related to a major fire/pipeline explosion in San Bruno, California. [R78] Breach of contract Calculated economic damages to a marketing firm that arose from alleged wrongful cancellation of its contract with an online car review company to sell "customer lead" subscriptions and other marketing tools to auto dealers. [R56] Valued economic damages to a distribution company that arose from alleged wrongful cancellation of a sports equipment distributorship agreement. [R53] Calculated economic damages that arose from early termination of a company's contract to run a lobby bar at a major hotel in San Diego, California. [R32] Calculated economic damages due to an Alaska hospital arising from an alleged breach of contract with the hospital's emergency air transport services provider. The provider contracted to operate two helicopters on behalf of the hospital but operated only one helicopter for a substantial period of time after the other aircraft crashed. [R72] Quantified lost profits that resulted from a credit reporting agency s reliance on an external marketing channel that sold outside its assigned territory and thereby wrongfully competed with the agency's internal marketing arm. [R4] Labor, employment, and compensation Assessed claims of systematic race discrimination in employee wages through analysis of statistical relationships among employee salaries, promotion histories, education levels, performance reviews, and demographic data. [R3] Eric Madsen - Page 3 Updated September 2013

4 Calculated lost earnings due to alleged wrongful termination of a hospital CEO. [R45] Used statistical analysis to assess the likelihood that company executives were assigned stock options to begin on dates that turned out to be favorable without having backdated the options. [R2] In multiple matters, utilized punch-card databases to calculate potential liability and economic damages in wage and hour class action matters that alleged companies failed to properly compensate employees for missed and late meal periods and missed breaks. [R21] False advertising Valued economic damages to a class of consumers resulting from a beverage company's false claims of health benefits attributable to drinking its juice products. [R86] As part of a false advertising claim, calculated lost profits due to a gold buyer/seller whose competitor allegedly falsely advertised the price it pays for gold. [R68] In three separate false advertising matters (each involving the same plaintiff but different defendants), rebutted consumer surveys which claimed to demonstrate extensive product substitution between the plaintiff's juice brand and the defendant juice brands accused of false advertising. Also calculated economic damages that resulted from the alleged false advertising. [R62] Intellectual property (patent, trademark, and copyright infringement) Calculated economic damages to an industry-dominant printer cartridge OEM in a dispute which alleged that a China-based manufacturer infringed four of its patents; Analysis considered the availability of non-infringing alternatives to the patented products consistent with the Panduit factors and estimated royalties that the disputing parties would have agreed upon in a hypothetical negotiation, consistent with the Georgia Pacific factors. [R49] Calculated lost profits in a trademark infringement that involved a major clothing retailer's alleged improper use of a niche t-shirt maker's trademark in one of its seasonal catalogues. [R17] Calculated lost profits and reasonable royalties due to a manufacturer of artificial hair fibers due to a competitor's infringement of some of the manufacturer's patents. [R84] Calculated economic damages that resulted from a copyright dispute between two companies with competing mobile stereo systems branded with similar names. [R52] Business interruption Calculated economic damages suffered by a furniture manufacturer from a fire that burned down one of the company s manufacturing sites in a dispute between the manufacturer and its insurer. [R1] Calculated lost profits to a wind energy company that would result if a competitor proceeded with positioning a wind farm upstream from the company's wind farm. [R54] Antitrust Performed damages analysis in an antitrust bundling matter that pitted retailers against a major manufacturer of clear tape. Plaintiffs alleged that the manufacturer s rebate program based on rewards gained by making purchases across the manufacturer s various product categories strengthened the manufacturer s alleged monopoly on clear tape, resulting in inflated prices. Analysis included generating an inflation-adjusted index of the manufacturer s wholesale prices calculated from Eric Madsen - Page 4 Updated September 2013

5 a vast transaction-level proprietary database. Work also included a rebuttal of Plaintiff s damages claims. [R8] Performed analysis involving allegations that two major film exhibition chains and several major distributors conspired to allow the exhibition chains to monopolize hit films and thereby minimize competition from other film exhibitors. Analysis included an economic defense of the industry s longstanding practice of limiting film distribution to particular exhibitors for particular films. Further, analyzed the pre-release predictability of hit films and compared performance of theaters from allegedly monopolized districts against those from highly competitive districts. Further, measured the alleged conspirator s ticket and concession pricing histories against those of its competitors to assess the possibility of monopoly pricing power. [R7] Tested econometric models and analyzed econometric trends in a case that alleged collusion among vitamin manufacturers. Statistical models identified factors that affected vitamin pricing. [R5] Analyzed auction price histories in a matter involving tobacco farmers who alleged that tobacco manufacturers rigged bids to obtain auctioned tobacco at non-competitive prices. [R5] Measured the effect on a cab company's market share that resulted from exclusive arrangements between a competing cab company and cab stands at certain destination properties. [R60] Other In a class action matter involving over 50 million members, tabulated transaction counts, transaction fees, and purchase concentration ratios for various class subgroups (e.g. customers with substantial purchase volumes) from the company's transaction database (nearly 200 million records) to assist with case settlement. [R40] Utilized a licensee's transaction database to determine the amount of unpaid royalties due to a company that licenses data backup capabilities. [R28] As part of litigation involving a California forest fire that consumed thousands of acres, critiqued an expert witness's Habitat Equivalency Analysis used to measure one component of the fire's economic damages. [R64] Reconstructed multiple millions of dollars in accounting records related to a city's dispute with the U.S. Federal Government involving assessment and litigation of environmental damages. Reconstruction involved matching invoices and payments and elimination of duplicate records. [R76] In a class action law suit against a major electronics retailer, calculated the trade-off between premiums and deductibles on insurance policies in order to estimate the price that customers would have paid for extended warranties had they been informed of alleged hidden costs that the retailer imposed upon customers redemption of their warranties. [R12] Eric Madsen - Page 5 Updated September 2013