Which answer best describes an expert?
1. A person who will state whatever it takes to help a litigator win a case.
2. A person who is qualified as an expert by knowledge, skill, experience, training, or education.
3. A person who dresses well and speaks well and can spin facts and theories through deposition and
The correct answer is #2, taken from Rule 702 and essentially based on the so-called “Daubert trilogy.”
• Daubert v. Merrell Dow Pharmaceuticals
• General Electric Co. v. Joiner
The “abuse-of-discretion standard of review”
• Kumho Tire Co. v. Carmichael
A Trial Judge’s “gatekeeping” function can be applied to all expert testimony, not just scientific and
Litigators want to win cases, but must do so within the confines of this trilogy when selecting experts to
provide testimony. Experts must be experts in a specific field or discipline. They should not merely be
experts at being experts.
Why do you need a valuation ?
Start by asking the key scoping questions !
What is the valuation needed for ?
Why is a professional valuation requested ?
Required Valuation-Accounting & Taxation
Disputes & Litigation
Who is the audience ?
What is the standard of value ?
What is really at stake ?
How should it be priced ?
This kind of valuation work is done in the context of a dispute or
The standard of value is generally Fair Market Value.
The audience is counsel, opposing counsel, the Court, and jurors.
It is more theoretical than commercial.
Generally Accepted Valuation Principles must be used:
The point of view for the valuation is a market participant’s view, i.e. an objective
third person viewpoint.
Expert Valuation Examples
Shareholder Oppression (Outside of Texas)
Tax Treatment of Damages
Non-patent Intellectual Property
Ex Ante vs. Post Ante Damages Calculations
Merger and Acquisition Disputes
Economic Analysis in Securities Cases
Essential Success Factors
Broad and deep industry experience
Testimony skill and confidence
Expert report drafting history
Detailed documentation and support
Carefully selected and vetted market inputs
Ability to clearly articulate findings to any audience
Expert, clean model and exhibits design
Navigant Consulting, Inc.
Navigant Consulting, Inc. is a
advisory firm that supports
institutional investors, legal
counsel, and government
agencies. The company focuses
on entities and industries
facing the challenges of
uncertainty, risk, distress and
significant change, and on the
issues driving these
Ticker NCI (NYSE)
2014 Revenue $859.6 million
Headquarters Chicago, IL
■ Julie Howard, CEO and
■ Cindy Baier, CFO and EVP
■ Richard D. Hitt, Managing
Director, Head of Navigant’s
Corporate Finance Practice
Navigant Consulting, Inc. (“Navigant”)
NCI’s 2,500+ professionals maintain a presence in 45 cities internationally
throughout North America, Europe and Asia, including a significant concentration of
resources in Chicago, Houston, London, New York, and Washington DC.
Comprehensive Energy Complex Coverage
Commodity Hedge Funds
Energy Trading & Marketing
Oil and Gas - Upstream
Oil and Gas – Midstream
Power Generation, Transmission, & Distribution
Comprehensive Valuation Capabilities
We have valuation expertise across the range of structures. We commonly
Investment grade debt
High yield and distressed debt
Common and preferred equity
Options, warrants & other derivatives
Real estate and other tangible assets
Commodities and futures contracts
Interest rate and currency swaps
Earnouts and other contingent claims
Power Purchase Agreements
Take or Pay contracts
Oil and gas royalties
Customer relationship intangibles
Economic loss damages/lost profits
Broad and deep expertise across the Energy Complex
We have consulting, banking, and corporate experience in diverse financial and commodity
markets, in addition to valuation & financial reporting technical capabilities. Our experienced
team includes MBAs, CPAs, CFAs, CBAs, ASAs, CAIAs, and MAI’s.
We are a one-stop shop, as we do complex commodity derivatives valuations alongside our
business and corporate valuation work.
While our opinions are independent, you are involved throughout our process, because you
know your investments better than anyone. We want to understand your thinking, and we want
you to understand ours.
Thoroughness and accuracy
We give you more than just the conclusions. We give you thoroughly supported, accurate
We are only interested in getting to the right answer, employing generally accepted valuation
“Trusted Advisor” to our clients
Our clients view us as business partners, working together to establish best practices in valuation
and transaction work as competitive advantages for their firms.
What makes Navigant unique?
Accepted in the Marketplace
Our work has supported KPMG, PwC, Deloitte, E&Y, BDO, GT, and other
audit firms’ technical & audit staffs, undergoing detailed review of our fair
value analyses for financial reporting and tax purposes.
Our work has been reviewed and accepted by the SEC in numerous filings.
We have extensive experience defending our valuations before the IRS
(including Tax Court) and other tax and regulatory bodies.
Our senior professionals have performed technical reviews during their
tenure at the major accounting firms. We maintain continuing professional
relationships with current reviewers at these firms.
Our methodologies and findings have been presented to, and accepted by
numerous rating agencies, qualified institutional buyers and certified
Our professionals have published and spoken extensively on valuation
topics as they pertain to the investment community.
A combination of…..
… resulting in a “Trusted Advisor” relationship creating
valuation as a competitive advantage.
“Very responsive from a process and analysis standpoint”
“Exceeds expectations in response time “
“Investors have reached out to Navigant on methods and assumptions and have only
provided positive feedback”
“Meets all schedules and deadlines”
“Provides creative ideas and suggestions”
References available upon request
What our clients say about us….
Navigant vs. Big 4
We have a diverse skill set; not just CPAs,
We have corporate industry experience, they do not,
Valuation is based on economics and finance, not on
We are not limited by rules-based thinking and
Navigant vs. Wall Street
We do not have trading and marketing desks, so we
can be more objective,
We understand regulatory and statutory valuation,
bankers often do not, and
We get all of the accounting and tax rules that are
unique to the Energy Complex.
Navigant vs. Boutique Firms
Our balance sheet and brand stand behind our work,
We can deploy a wide variety of resources globally,
We do not have to outsource or sub-contract
anything, we are a one-stop shop, and
Small firms cannot be counted on to be there with
you through all of your regulatory challenges.
Richard D. Hitt, Jr.
National Practice Leader
30 South Wacker Drive
Chicago, IL 60606
Navigant Consulting, Inc.
M.S.A., Eastern Michigan University
B.S., University of Michigan
Licenses & Certifications
Certified Public Accountant
Richard Hitt is a Managing Director and the Practice Leader for the Valuation & Financial Risk Management
practice of Navigant Consulting, Inc., based out of the Chicago office. He has more than 25 years of valuation and
financial advisory experience working with financial institutions and energy companies of all sizes.
In his current role at Navigant Consulting, Mr. Hitt oversees engagements governing acquisitions and sales of
banks and thrifts and is a leader in the firm’s efforts to develop and employ effective valuation and due diligence
techniques. His clients include some of the largest and best known financial service and energy corporations in
America, including Deutsche Bank, Bank of America, Bank of Montreal, KeyCorp, Charles Schwab, First Republic
Bank, E*Trade Financial Corp., NRG, LS Power, Primary Energy and Aquila.
Formerly a Managing Director of BearingPoint Inc’s Valuation and Financial Services Advisory practice, Rick led
the development of a multi-faceted practice that focused on banks, thrifts, specialty finance and energy companies.
His experience includes financial advisory to community and regional banks, including due diligence, fairness
opinions, shareholder value analyses, merger and acquisition transactions as well as capital raising and investment
strategies. Prior to BearingPoint, Mr. Hitt was a partner in KPMG’s Valuation Services Practice.
Recent assignments Mr. Hitt has directed include:
• Valued individually all the domestic and international electric generating facilities of a $5 billion utility for
asset-backed funding purposes. The project included separate valuations of the power contracts and
• Valued the domestic and international electric generating, electric and gas transmission and distribution
assets of a $4 billion utility for asset-backed funding purposes. The project also included valuing complex
electricity and natural gas derivatives.
• Performed financial analyses for the domestic operations of a $10 billion utility for debt restructuring
• Rendered a fairness opinion to a Midwest life company as part of establishing a mutual holding company.
• Rendered a fairness opinion to a retail self insurance fund related to an investment in a workers
compensation insurance company.
• Provided SFAS 141 and 142 valuation assistance in the merger of two $150 billion US banks.
Thomas J. McNulty
909 Fannin St. Suite 1900
Houston, TX 7010
Navigant Consulting, Inc.
Sirius Solutions LLP
Plains All American
US Foreign Service
Brown Brothers Harriman
M.B.A. (Accounting & Finance),
Kellogg, Northwestern University
B.A. (History), Yale University
Tom McNulty is a Director in the Valuation & Financial Risk Management practice of Navigant Consulting,
Inc. His specialties are transaction and commercial analytics, valuation, and risk management. Specifically, his
practice offers clients a unique combination of strategic, financial, and transactional advisory services. Mr.
McNulty is based out of the Houston office, and he has more than 20 years of financial advisory and related
As a consultant, Mr. McNulty has advised clients drawing on his valuation, transactions, risk management,
treasury and international credentials. Specifically, he has assisted with the valuation of securities, business
units, acquisition targets, derivatives, and equity incentive plans. In industry, and as an advisor, he has
worked on more than $38 billion in MD&A deals and has valued more than $8.5 billion notional in futures,
options, and other derivatives.
In his current role at Navigant Consulting, Mr. McNulty directs engagements governing acquisitions and
divestitures throughout the energy complex, including upstream oil & gas, midstream, merchant power,
renewable energy, energy services, trading and marketing, as well as LNG. He also performs valuation work
for clients with complex equity, fixed income, and commodity derivative instruments.
Recent assignments Mr. McNulty has led include:
• Provided ASC 815 assistance to several energy companies related to their derivatives portfolios.
• Rendered a comfort opinion to a energy hedge offering a new midstream oil & gas fund.
• Rendered an opinion to an oilfield services company for a related party transaction.
• Directed ASC 805 project for the reverse merger of two private drilling companies.
• Provided ASC 718 valuation assistance to a publicly traded oilfield services company for its restricted stock
units and stock options.
• Delivered ASC 718 valuation assistance to a privately held upstream oil & gas company for its equity
• Led the valuation work on the GP interest in a privately-held midstream company for a large litigation
1180 Peachtree Street N.E.
Atlanta, GA 30309
Navigant Consulting, Inc.
JC Bradford & Co
Associations and Licenses
FINRA Series 7 & 63
Candidate Member, American
Society of Appraisers
MBA, Finance, Vanderbilt
BSBA Finance, Creighton
Thomas Houlihan is a Director in the Valuation & Financial Risk Management practice of Navigant
Mr. Houlihan’s principal focus is on valuation and advisory engagements related to the energy sector. In this
role, has provided clients with valuation consulting services for purposes including transaction due diligence,
fairness opinions, capital raising & investment strategy as well as litigation, tax and regulatory purposes. With
more than 16 years of valuation and financial advisory experience, Tom has provided valuation and
transaction assistance for client engagements involving some of the world’s largest energy companies and
utilities, as well as mid‐sized companies, energy start‐ups and private investment funds.
Prior to joining Navigant Consulting, Tom held various roles in investment banking and corporate finance,
including senior positions in the debt capital markets division of JC Bradford & Co (now UBS Capital Markets)
and more recently in corporate development and asset management positions with Mirant Corp (Southern
Energy) and as Director of Finance and Strategy for Intercontinental Exchange (ICE).
Recent assignments Mr. Houlihan has directed include:
• Fair Market Value of multiple nuclear power plants - Retained by a large investor owned utility to assist
with evaluating options with respect to the early buyout or termination of lease financings secured by
the company’s interest in several nuclear power plants.
• Valuation of a municipal waste-to-energy generation facilities to assist a client with evaluating lease
repurchase and financing options;
• Acted as primary valuation advisor to support a client’s effort to finance the $210 million purchase of 680
MW North American peaking facility. NCI provided the client with additional valuation services to
support the company with allocation of purchase price for financial reporting.
• Performed the valuation of North American gas distribution system serving approximately 426 active
meters through approximately 11 miles of gas distribution mains. NCI provided an estimate of the fair
market value of the business to assist the client’s effort to secure just compensation for the assets, which
were taken through condemnation proceedings.
• Retained by a major investment bank to provide an estimate of the prospective fair market value of a of
1,161MW CCGT. The estimate of value was necessary for financial reporting purposes, including
disclosures related to residual value guarantees stipulated in lease finance transactions for the plant.
Neeli Souli Kohan
90 Park Avenue, 10th Floor
New York, NY 10016
Navigant Consulting, Inc.
Deloitte Financial Advisory Services
Overseas Shipholding Group
M.B.A., Finance, Pace University
B.S., Accounting, Yeshiva University
Chartered Financial Analyst (CFA),
Certified Public Accountant (CPA),
NY and NJ
Neeli Kohan is an Associate Director in the Valuation & Financial Risk Management practice of Navigant
Consulting, Inc. Ms. Kohan is based out of the New York office.
Ms. Kohan has more than 16 years of experience in the valuation of public and private businesses, securities,
and intangible/tangible assets. She has performed valuations for purposes of financial reporting (including
Business Combinations, Goodwill and Long Lived Asset Impairment Testing for US GAAP and IFRS), Federal
tax, project financing, sale/leaseback transactions, M&A due diligence, and management information purposes.
Industries served include power generation, gas, electric, water and wastewater utilities, alternative energy
providers, private equity, media and entertainment, shipping and transportation.
Ms. Kohan is a Certified Public Accountant, a Chartered Financial Analyst and a candidate of the American
Society of Appraisers. She has a B.S. from Yeshiva University in Accounting and an M.B.A. from Pace
University in Finance. Prior to joining Navigant Consulting, Ms. Kohan was with the Valuation practice of
Deloitte Financial Advisory Services, LLP.
Technical Upstream Services
Opportunity Screening and Evaluation
Strategic framework and prospect screening, detailed analysis, and project
Economic and Capital Program Valuation
Reserves valuation, economic assessments, post-installation appraisals, risk
analysis, and stochastic modeling.
Exploratory drilling, regulatory planning/administration, and environmental
Oil & Gas Asset Evaluation & Exploitation
Drilling, completion, testing, production initiation, operations execution, drill-
bit to sales project execution, regulatory planning, and administration.
Capital Project Design & Implementation
Infrastructure and production facilities development, planning and
scheduling, full field development, portfolio management, basic engineering
design, FEED, construction, procurement, PMO, engineering data
management, wastes management, and water management.
Technical Upstream Services cont’d
Artificial lift methods, facility assessments, completion techniques and
design, subsurface assessment and configuration, cost and expense
management/efficiency, well integrity, real-time operations optimization,
and integrated operations.
Reserve & Reservoir Engineering
Reserves re-assessment, recovery enhancement & production
optimization, reservoir management, and infill programs.
Operating asset rationalization, asset integrity management, and
Data Management & Innovation
Subsurface data management & data flow optimization, real-time data
management, and digital oilfield rationalization and optimization.
Liya Dossybieva is an upstream oil & gas professional with over 14 years of international experience in
hydrocarbons production operations, business strategy & transformation, investment & divestment
projects evaluations, business optimisation and continuous improvement. She is an expert in
optimisation of upstream operations, operational excellence, and integrated operations models. Liya
develops and leads delivery of strategic and business transformation initiatives and programmes with
the view to optimise production assets’ efficiency, reduce operational costs, increase production levels,
and improve recovery. Liya will deliver data analysis and hypothesis creation for Clients.
Terry Manning, a Director in Navigant’s global Oil & Gas practice based in Houston, is an upstream oil
and gas professional with more than 35 years of practical execution and asset management experience.
He is an experienced practitioner in the areas of production optimization, streamlining operations,
reservoir management and portfolio rationalization, including well completions, reserve analysis and
managing oil and gas assets to improve profitability. Terry has relevant and specific work experience in
many of the producing basins in the United States and in Canada. He is a strong advocate that drilling
and completion program optimization originates from repeatable processes for effective and efficient
development planning and real-time implementation appraisal. Terry’s Houston location provides
direct access for North American client personnel.
Mike Dyson is a Director in Navigant’s global Oil & Gas practice. He brings 30+ years of experience in
the upstream oil and gas business, having worked at Shell and BG Group around the world. His core
expertise is in well and production operations, capital projects, supply chain strategies and new
technology development and implementation. He is focused on providing consulting advice to oil & gas
E&P companies looking to improve their business performance, and is a strong advocate of holistic and
sustainable improvement by tackling all elements of transformation. These include rigorous operations
planning and execution, collaborative working across the supply chain, application of new technology,
teamwork, communications and personal leadership.
Our Upstream Professionals