Outside financial experts often serve a consulting role in cases involving complex financial matters. For instance, they can help attorneys and business owners navigate the complexities of accounting and tax principles, valuation and forensic accounting methodologies, and financial analysis techniques.
It’s often prudent for one financial expert to act as a behind-the-scenes consultant and strategic partner while a different independent expert testifies at trial. Keeping these roles separate generally protects the consultant’s opinions and communications from discovery — except under extraordinary circumstances. This allows attorneys and clients to share information freely with consultants and seek their opinions on sensitive issues without fear of revealing strategies to opponents.
In most cases, testifying experts issue written reports before their depositions. The reports outline their opinions, methodologies and supporting evidence. A financial consultant can evaluate reports prepared by both your side’s testifying expert and the opposing expert. Their reviews help identify weaknesses in financial analyses, highlight errors in calculations and assess whether conclusions align with industry standards.
Attorneys may also hire financial consultants to interpret documents central to a case, such as tax returns, financial statements, general ledgers and accounting schedules, and shareholder agreements. Their interpretations may uncover potential discrepancies or hidden financial details that could be pivotal in litigation.
Financial consultants can help attorneys draft questions for depositions, also known as examinations before trial (EBTs). These questions typically assess the experts’ qualifications and experience, clarify calculations, challenge subjective assumptions, and identify biases and inconsistencies.
In addition, financial consultants might help frame hypothetical scenarios to test the consistency of an expert’s analyses. Asking “what-if” questions — such as how a valuation would change under different market conditions or how damage calculations would shift with adjusted revenue assumptions — forces testifying experts to justify their methodologies under alternative circumstances. This can expose weaknesses or subjectivity in their conclusions and provide valuable insights into the expert’s ability to withstand cross-examination.
“Mock” EBTs, where the financial consultant plays the role of the opposing expert, can help attorneys refine questions, test strategies for direct and cross-examination, anticipate objections, and assess their own testifying expert’s ability to perform under pressure. Simulating responses to key financial questions improves expert witness preparation and helps attorneys strengthen their ability to challenge financial evidence effectively.
Once EBTs are complete, financial consultants can review the testifying experts’ testimony for inconsistencies in written reports and other financial documents. Major concerns or contradictions may help support motions for summary judgment or to impeach expert witnesses. Although testifying experts generally don’t issue new reports post-deposition, they may submit a supplemental report if new information emerges or to clarify or expand on prior opinions. Financial consultants can also evaluate supplemental reports before trial and advise attorneys accordingly.
With the help of a financial consultant, attorneys can refine their trial strategy and draft pointed cross-examination questions for opposing experts. Moreover, they can evaluate their own experts’ positions and adjust direct-examination questions and trial arguments.
In addition, attorneys can use financial consultants to help prepare trial exhibits that distill complex financial data into easy-to-understand charts, graphs and tables. These exhibits may help reinforce testimony, summarize key findings and visually support arguments while adhering to evidentiary standards. They should clarify key points without misleading or overwhelming judges and juries with limited financial or accounting backgrounds.
Partnering with a financial consulting expert — from the onset of a case to closing arguments — provides a strategic advantage in litigation. It allows attorneys to build stronger cases and present well-supported financial arguments in depositions and at trial.
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