Conference Sessions

This schedule is subject to change.

Monday, September 12

8:00 - 8:30am Introduction & Opening Remarks
8:30 - 9:30am Keynote Address: The Secrets of Economic Indicators
Bernard Baumohl
Chief Global Economist | The Economic Outlook Group

Using real-world examples and stories, Mr. Baumohl illuminates every U.S. and foreign indicator that matters. He will discuss where to find them, what they look like, what the insiders know about their track records and exactly how to interpret them. Nobody can predict the future with certainty, but The Secrets of Economic Indicators will get you as close as humanly possible. This enlightening presentation will address key questions including: When will we see a recovery in jobs, consumer spending, and housing; Where are interest rates, oil prices and inflation headed? Which countries will be the leaders and laggards in the post-crises global economy? What are the greatest economic and geopolitical threats we face --- and what impact will they have on economic growth should any erupt?
9:35 - 10:35am Enhanced Multiple Corporate Valuation Model
Rajiv Gokhale
Executive Vice President | Compass Lexecon

Based on a forthcoming paper with Bradford Cornell, the presentation will discuss an alternative valuation methodology that focuses on publicly available information to value companies.

Public Company Valuation Credential
Nancy M. Czaplinski, ASA, CPA/ABV/CGMA, CFA
Managing Director | Duff & Phelps LLC

Michael DeLuke, ASA, CPA
Managing Director | Houlihan Lokey

William A. Johnston, ASA BV/IA
Managing Director | Empire Valuation Consultants

Get up to speed on the latest efforts by ASA and other organizations to launch a new public company fair value credential. This panel discussion will provide an overview of the new Fair Value Measurement Credential including baseline experience and CPE qualifications along with VPO membership, ongoing training, the fair value assessment, and Experienced Entry professionals. A must-attend for professionals responsible for business valuations (ASC 350 & 718) and intangible asset valuations (ASC 805).
11:05am - 12:05pm
Valuing Government Contractors
Kimberly M. Randolph, ASA
Director | Stout Risius Ross, Inc.

This presentation will cover an overview of the government contracting industry, a comparison of public vs. private company multiples, as well as valuation drivers and key considerations in the valuing government contractors.

Insights and Applications from Investment Banking
Michael W. Poole
President | PCE Investment Bankers, Inc.

Valuation theory versus reality.  Exploring the difference between “real buyers and sellers” versus the “imaginary willing buyer and seller”.  Examples of transactions where formal valuations differed from actual consideration paid or received in a transaction.

Supporting Clients Through the Audit of Fair Value Measurement and Disclosure
Martin Mazin
Partner | KPMG LLP

During this session, we will provide an overview of the relevant standards and guidance on auditing fair value measurements and disclosures contained in financial statements.  The session will leverage actual PCAOB comments to help the audience gain a better appreciation of the audit documentation requirements, in particular, as it relates to fair value measurements.  In addition, the presentation will provide helpful recommendations for steps that can be taken during the valuation engagement, which could mitigate the time and effort required during  the audit review process.
1:30 - 3:00pm
The Absurdity of CAPM
Pablo Fernandez, Ph.D.
Professor of Finance | IESE Business School

The CAPM is an absurd model because its assumptions and its predictions/conclusions have no basis in the real world. We will see some of the vast amount of information and research that we have that permits us to conclude that the CAPM does not “explain facts or events”, nor does it describe the past, present, or future state of something. As will be seen, users of the CAPM make many illogical errors valuing companies, accepting/rejecting investment projects, evaluating fund performance, pricing goods and services in regulated markets, calculating value creation.

Value Allocations in Complex Capital Structures
Charles B. Higgins, CFA
Director | CBIZ Valuation Group

This case study driven session will cover the methodologies utilized to allocate total value in companies with complex capital structures, including structures that consist of convertible debt and multiple classes of equity.  Methods discussed will include the option pricing method, the probability-weighted expected returns method, and the hybrid method.
3:30 - 4:30pm
Beyond CAPM - New Developments in Cost of Capital
Roger J. Grabowksi, FASA
Managing Director | Duff & Phelps

CAPM predicts that differences in returns on stocks are a function of differences in beta estimates. But researchers have found that variation in returns is not explained by differences in market betas. It is quite clear that the CAPM is neither a theory nor a model because it does not “explain facts or events”, nor does it “describe the past, present, or future state of something”.  Researchers have found that differences in returns are explained by a “zoo of new variables” and multiple betas (such as hypothesized by APT). Our theoretical controversies are about how discount rates are formed…. Theories are in their infancy….” Further research has found that returns on common stocks are not normally distributed. Consequently, the central limit theorem does not hold, negating mean-variance finance as we know it (i.e., negates CAPM, APT, Black-Scholes Option Pricing Model).

What should we as practitioners do? Are there better ways to estimate beta that are supportable and practical for real world application? Is there a more robust model for cost of capital estimation? In the end, do the results of any “new” model really give me a “better” estimate of the cost of capital than we get from MCAPM or Build-up method?  In this session we will explore this research, better ways of estimating betas, the IPCPL and the consequences for developing cost of capital estimates.  

The Valuation of Complex FLPs
Bruce A. Johnson, ASA
President | Munroe, Park & Johnson, Inc.

Adopting a more analytical method for valuing FLPs using the income and market approaches allows appraisers to more accurately and objectively determine value.  As professional methodology has advanced, there are certain types of partnerships that may be considered complicated. This webinar will focus on valuing complex FLPs including high debt FLPs, multiple asset FLPs, oil and gas FLPs and non-income producing FLPs using case studies. In addition, the speaker will share his opinion on issues such as how to handle the FLPs that own privately held stock, stacked discounts with multiple partnership interests, venture capital funds and promissory notes.

Professional Standards & Regulatory Update
Drew Dorweiler, ASA, MBA, CPA/ABV, CBV, CVA, CFE, RICS
Managing Partner | Dartmouth Partners Limited

Adam M. Smith, ASA
Technical Writer / Managing Director | International Valuation Standards Council / PricewaterhouseCoopers

This session will address regulatory changes and developments from a number of organizations including the Financial Accounting Standards Board (FASB), the International Accounting Standards Board (IASB), and the International Valuation Standards Council (IVSC). We will also review the latest trends and developments in professional valuation standards and regulatory outlook focusing on The Appraisal Foundation and the Securities and Exchange Commission.
4:35 - 5:35pm
Value What? What Value?
Richard Wise, FASA, CPA, FCA, MCBA, FRICS, FCBV, CFF, CVA
Partner | MNP LLP

Gilbert E. Matthews, CFA
Chairman and Senior Managing Director | Sutter Securities Incorporated

In this session Richard Wise of ASA’s College of Fellows and Gil Matthews will discuss the two most common standards of value on which members of our profession are called upon to opine.  Richard will examine the “fair market value” standard of value and provide an in-depth analysis of each of the several components of this standard, with specific reference to the relevant case law.  Gil will discuss “fair value” for purposes of shareholder dissent and oppression, how it differs from fair market value, and the impact of recent court decisions.  As will be demonstrated in their presentations, “fair value” for statutory appraisal has a totally different meaning from both “fair market value” and  “fair value” for financial reporting under GAAP.

Tuesday, September 13

8:00 - 10:00am
Mock Trial
Peter L. Gladstone, Esq.
President | Gladstone & Weissman, P.A.

Jack Beckwith, ASA, CEA
President, Equipment Appraisal Group, Inc.

Roger Durkin, FASA, J.D., M.S.
Durkin Law, P.C.

Charles Rosoff, ASA, MRICS
President | Appraisal Services Associates

Gary R. Trugman, ASA, CPA/ABV, MCBA, MVS
President | Trugman Valuation Associates, Inc.

William P. (Bill) Wilson III, ASA
Wm P Wilson Company

David Wolf, ASA, MGA®, GIA GG
President | Just Appraisers

Come experience the good, the bad, and the ugly of what it is like to be an expert witness.  This mock trial will have something for each discipline, with an experienced trial attorney demonstrating what we all do wrong as experts.  No matter how good you think you are, this session is bound to be a wake-up call as you will see what a good attorney can do to even the best of experts.  We are even going to include some ethical issues in the presentation to demonstrate how to avoid getting in trouble!
10:30am - 12:00pm
Adjusting Betas for Leverage – What is the Best Method?
Pablo Fernandez, Ph.D.
Professor of Finance | IESE Business School

We will analyze 7 alternative relationships between the levered and the unlevered beta proposed in the literature. The relationships depend on the magnitude of the value of tax shields according to 7 alternative valuation theories. Only one of the relationships provides us with sensible results. The other six provide inconsistent results.

What Appraisers Need to Know Before Rendering a Fairness Opinion
H. H. Sean Wee        
Partner | Manatt, Phelps & Phillips, LLP    

This presentation will cover what a fairness opinion is and what it is not, the customary process for delivering a fairness opinion, common issues, potential liability and recent court cases.  Emphasis will be placed on managing the risks associated with fairness opinion assignments.
 
Using Statistics to Quantify Lost Profit Damages
Michael A. Crain, DBA, CPA, ABV, CFA
Principal | The Financial Valuation Group

G. William Kennedy, PhD., CPA/ABV
Managing Director | Berkeley Research Group, LLC

This session will feature materials from a chapter written by Drs. Crain and Kennedy for an upcoming text on Calculation of Lost Profits Damages-Theory and Practice edited by Everett Harry and Jeff Kinrich. The session will use case study examples to illustrate the many complications and pitfalls that can be encountered when using statistical analysis to quantify lost profit damages, including:

So what is this but-for analysis all about? Detecting trends in data and deviations from trend considering single data series and paired observations.

Hammer, screwdriver, saw; which tool do I use? Model development and variable selection. Discuss the different types of models available; simple and multiple regression, time series, etc. and examples of when each might be used.

Are your results statistically significant? No really, are they? The meaning and interpretation of the various regression statistics and coefficients, statistical significance and explanatory power of models.

Let me ask you again; are your results statistically significant? Lions, Tigers, and Bears, OH MY! Hetroskedasticity, serial correlation, and multicollinearity in your model may render your models unreliable. How they impact your models; how to detect and how to correct.
1:00 - 2:30pm
Variable WACC/Capital Structure Framework – Design and Implementation
John A. Taylor, ASA, CMC
Managing Director | Houlihan Lokey Financial Advisors

Yuka Itami, CFA
Senior Vice President | Houlihan Lokey Financial Advisors

WACC is commonly derived based upon considering historical subject or industry/comparable data.  However, what if market or subject conditions represent anomalous or non-sustainable conditions relative to capital structure or rates of return? Regardless of whether the observed conditions are caused by internal or external factors, it may be relevant to consider capital structure, as well as costs of debt and equity, upon the return to a “normalized” level.  This presentation will address potential symptoms of abnormality, considerations and potential informative analyses as well as designing and implementing a variable Capital Structure/WACC model.

Valuation of Customer Related Intangibles
PJ Patel, ASA, CFA
Senior Managing Director and Co-CEO | Valuation Research Corporation

This presentation will focus on the topics covered in the Appraisal Foundation’s Valuation Advisory – Valuing Customer Related Assets.  The presentation will focus on methods (MPEEM, distributor method, with and without and the cost approach), various issues discussed such as inventory, deferred revenue and attrition and other hot topics.

Using Statistics to Quantify Lost Profit Damages (continued)
Michael A. Crain, DBA, CPA, ABV, CFA
Principal | The Financial Valuation Group

G. William Kennedy, PhD., CPA/ABV
Managing Director | Berkeley Research Group, LLC

Continuation of previous session.
3:00- 4:15pm
The State of the Private Capital Markets
Craig R. Everett, Ph.D.
Asst. Professor of Finance & Director of the Pepperdine Private Capital Markets Project | Pepperdine University – GSBM

This presentation by Dr. Everett describes the current conditions of the debt and equity markets for private businesses.  The data is derived from the annual survey results from the Pepperdine Private Capital Markets Project.  The Pepperdine annual private cost of capital survey was launched in 2007 and is the first comprehensive and simultaneous investigation of the major private capital market segments. We examine the behavior and expectations of senior lenders, asset‐based lenders, mezzanine funds, private equity groups, venture capital firms, angel investors, privately‐held businesses, investment bankers, business brokers, limited partners, and business appraisers.  

Patent Litigation
Robert P. Schweihs, ASA
Managing Director | Willamette Management Associates

Patent litigation is theater and the storytelling does not always require dialogue about the value of the patent. Understand your role and be prepared to improvise. We will discuss how a valuation expert can play a starring role without valuing the patent.

Valuing Cannabis Related Entities and Intellectual Property Rights
Ronald L. Seigneur, ASA, CPA/ABV, CFF, CVA, CGMA
Managing Partner | Seigneur Gustafson LLP

This session will provide an overview of the cannabis sector, including the status of federal versus state and local laws and regulations and the ramifications for professional service providers. The unique challenges encountered in valuation of cannabis related operations and IP will be identified and discussed. Emerging trends and issues will be discussed, including the evolving nature of cultivation activities and the consolidation of operators. Sources of information will be provided. Learning outcomes will include: understanding the importance of the four Ls: leases, licenses, location and legislation; assessing risk within the cannabis sector; where to find cannabis industry resources and guidance; and applying the DCF method to a cannabis business.
4:20 - 5:35pm
Quantifying the Impact of Economic Environment on Business Performance and Value
Ashok B. Abbott, Ph.D.
Associate Professor of Finance | West Virginia University

Businesses are fundamentally dependent on their economic environment. A healthy flow of inputs and outputs is critical for the business to survive and thrive.  Quantifying the role and impact of macroeconomic factors (GDP, inflation, population, cost of capital, disposable income, unemployment, etc.) is critical in evaluating the relative contribution of economic environment (passive) and management (active) to success or failure of the business. This session clarifies the distinction between correlation and causality, introduces quantitative techniques used to establish causality, and to measure the elasticity of business revenues to macroeconomic factors. This analysis has wide applications in valuation/litigation arena.   

Contingent Consideration – Working Group Update
Daniel Kahn, Ph.D.
Principal | Ernst & Young LLP

This session will discuss the release of a draft document from the Appraisal Foundation Working Group. Key areas of interest will be discussed, as well as some of the more challenging issues appraisers face. Many key technical concepts will be addressed for the audience. Do not miss out on this opportunity to learn and ask questions about this advanced topic!

Risks and Rewards of Using Control Premiums Under the New MPAP Guidance
Eric Nath, ASA
Principal | Eric Nath & Associates, LLC

What is the current status of the Appraisal Foundation’s guidance on control premiums (“The Measurement and Application of Market Participant Acquisition Premiums”)? What are the key takeaways from the control premium guidance as it currently exists? And what could be the implications for appraisers in valuing assets for impairment and other financial statement assignments? We will explore the risks of liability coming from the SEC and the PCAOB if control premiums are asserted, and we will explore the conditions under which a control premium could be justified.

Wednesday, September 14

8:00 - 9:15am
Valuation of Shares of Companies with a Dual Class Structure
Gilbert E. Matthews, CFA
Chairman and Senior Managing Director | Sutter Securities Incorporated

This session will discuss the relative value of high-vote and low-vote shares and the factors that impact the relative value. It will address (a) the use of dual class structures in the U.S., (b) U.S. practice in comparison to various international jurisdictions, (c) loyalty shares, (d) premiums and discounts for publicly traded high-vote shares, (e) the trend toward unification of dual class structures, and (f) relevant U.S. court cases. It will discuss the relative treatment of high-vote and low-vote shares in acquisitions and restructurings and will propound an approach to determining the relative value of high-vote shares based on data from premiums paid to high-vote shares in U.S. public transactions.

In Search of Value: Making the Guideline Public Company Method More Informative
John D. Finnerty, Ph.D.
Managing Director/Professor of Finance | Alix Partners, LLP/ Fordham University

The presentation will describe significant enhancements to the guideline public company valuation methodology.  It will provide robust regression-based models for estimating appropriate multiples of enterprise value (EV) to revenue, EV to EBIT, EV to EBITDA, and Market to Book based on comparable industry financial data.  It will demonstrate the superiority of the new models over alternative approaches.

Common Flaws in BV Reports Submitted for Accreditation
Arlene Ashcraft, ASA, CFA
Principal | Columbia Financial Advisors, Inc.

Trey Stevens, ASA, MCBA
Managing Director | Stevens & Greer, LC

Advancement to Accredited Member or Accredited Senior Appraiser in business valuation requires the submission of one business valuation report deemed to be acceptable by the ASA International Board of Examiners (BOE). In this session, Arlene Ashcraft and Trey Stevens, the current and former vice-chairs of the BOE for the business valuation discipline will (1) summarize the ASA guidelines for business valuation reports, and (2) discuss common flaws in business valuation reports submitted for accreditation.
9:20 - 10:35am
When an Option is Not an Option
Robert P. Schweihs, ASA
Managing Director | Willamette Management Associates

Option pricing theory is sometimes referred to as a black box. Option pricing can be a useful tool to solve valuation problems with it is properly applied. It can also be misused and misapplied. The black box will be opened. We will discuss the tools inside, how and when to use them, how to defend their applicability and how to recognize when they're being misused.

Valuing Foreign Acquisitions
Neil J. Beaton, ASA, CPA/ABV/CFF, CFA
Managing Director | Alvarez & Marsal Valuation Services, LLC

Mr. Beaton will discuss the nuances and intricacies of preparing a valuation for and assisting in a foreign acquisition including market information, standards of value, legal issues, tax issues and other considerations unique to cross-border transactions.

Incorporating S Corp Research into Your Valuation Analysis
Nancy J. Fannon, ASA, CPA, ABV, MCBA
Partner in Charge of Litigation Services | Meyers, Harrison & Pia Valuation and Litigation Support, LLC

This session will provide specific guidance for incorporating the wealth of research relating to the effects of taxes on value into your valuation analysis. Key take-aways will be: When to apply a so-called "premium" - and when not to; Suggestions for presentation in your reports; Examples of simple, clear language to explain your analysis; Reconciliations of your conclusion to prior cash-flow based methodologies.
10:50am - 12:05pm
Valuing Sports Franchises
Drew Dorweiler, ASA, MBA, CPA/ABV, CBV, CVA, CFE, RICS
Managing Partner | Dartmouth Partners Limited

Professional sports franchises are not merely an exciting are of valuation, they also offer instructive examples of real-life valuation procedures applicable to business and intangible assets.

How to Effectively Review an Appraisal Report
Timothy R. Lee, ASA
Managing Director | Mercer Capital

Appraisal review requires both technical proficiency and intuitive logic.  Mercer Capital's Tim Lee will guide you through how to effectively review an appraisal report – focusing on the practicalities of the exercise.  Specifically, he will address the importance of getting your arms around the facts and circumstances of the assignment and the subject interest, the appropriateness of the valuation methods, and the reasonableness (or lack thereof) of critical assumptions employed.  In addition, USPAP Standard 3 will be summarized.

Private Equity/Venture Capital Valuation Practice Guide Task Force Update
Raymond Rath, ASA, CFA
Managing Director | Globalview Advisors LLC

The release of ASC 820 and increased scrutiny by the SEC have increased concerns on valuations of investment holdings of private equity, venture capital and other investment funds.

The AICPA Accounting & Valuation Guide Valuation of Privately-Held-Company Securities Issued as Compensation (“Cheap Stock Guide”) provides useful insights on the valuation of stock interests in private companies primarily for ASC 718 purposes.  While the Cheap Stock Guide can assist in the valuation of PE and VC investment holdings, PE and VC fund managers must address numerous unique issues not covered in the Cheap Stock Guide.  This presentation will provide a detailed update on key areas of focus of the pending discussion draft of PE / VC Practice Guide and the current status of the guide.