Specialty Areas of Practice

Measurement Strategies—Managing Business Interruption Claims

Thursday, June 6
10:10 a.m.–11:50 a.m.
2 hours CPE
This workshop will cover the issues involved in calculating lost business Income under common insurance coverages.

After completing this session, attendees will be able to:

• Identify at least three issues impacting the Period of Restoration
• Identify the attributes of Extra Expenses which would make them covered under a common insurance policy
• Describe and apply two different Business Income calculation formats

Total CPE: 2 hours
Field(s) of Study: Accounting—2 hours

Who Should Attend:

CPAs, valuators, practitioners, etc.—anyone interested in developing and advancing their skills for this topic.

Program Level and Prerequisites:

Intermediate: Learning activity level that builds on a basic program most appropriate for individuals with detailed knowledge in an area.

Advanced Preparation:

None

Joe Epps

Joe  Epps

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Kerrie Merrifield

Kerrie  Merrifield

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Beliefs, Behaviors, and Fraud in Valuations

Thursday, June 6
12:50 p.m.–1:40 p.m.
1 hour CPE
In cases where enterprises and their assets are to be assigned a value, we find an inherent propensity to present the value of an enterprise or a group of assets as materially higher or lower than conventional valuation methods would suggest (e.g., HP’s acquisition of Autonomy in 2011). This sort of “window dressing the financials” is a form of fraud when deliberately performed in the context of M&A deals.

Fraud is not committed by computers and other forms of technology. Fraud is committed by the people using the technology to attain an illegal goal. Because fraud is committed by people, it is driven by psychology. The technology is simply the machinery by which the fraud is committed. But there are several ways of lying and misrepresentation, so detecting deception is an important capability.

The psychology of fraud gets to why people commit fraud. Greed is often assumed, but most cases of fraud—including those committed in valuation engagements—present greed as a symptom, but not the pathology behind the fraud.

Human pathology behind fraud varies by individual. Deep psychological reasons create a need for overstating or understating the value of an enterprise or its assets. Keeping up with the Joneses or social comparison, achieving parity through revenge for some (perceived) slights or wrongs of the past, misdirected idealism to support a cause, compensation the fraudster believes is due for unrecognized contribution, obsession with status stemming from childhood shame, or even psycho-pathology—the list is a long one. In this session, the presenters will explore some of these fascinating angles and perspectives, and offer some techniques of deception detection.

After completing this session, attendees will be able to:

• Identify how to be better attuned to the psychology of those providing valuation data and therefore alert to the red flags of potential fraudulent activity in the context of M&A.

Total CPE: 1 hour
Field(s) of Study: Personal Development—1 hour

Who Should Attend:

CPAs, valuators, practitioners, etc.—anyone interested in developing and advancing their skills for this topic.

Program Level and Prerequisites:

Overview: Learning activity level that provides a general review of a subject area from a broad perspective.

Advanced Preparation:

None

Dr. Sridhar Ramamoorti

Dr. Sridhar  Ramamoorti

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David Morrison, III, MD

David  Morrison, III, MD

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Leading with Your Heart—How to Avoid Romance of The Deal through Cold-Hearted Diligence

Thursday, June 6
2:00 p.m.–3:40 p.m.
2 hours CPE
Attendees will leave the session with an increased understanding of the critical essentials in deal due diligence and how to apply them to help their clients objectively manage deal risk. The focus will balance the conceptual with real-life tool take-aways professionals can put to work.

As opposed to hypothetical transactions with unknown but willing participants, the presenter will take the group through real deal elements, real-world transaction risk assessment, and will help the professionals grasp the most critical mistakes in M&A deals and how to minimize those risks.

Lastly, he will walk them through several real-world bad deal litigation cases and will pinpoint the diligence failures that contributed to these outcomes.

After completing this session, attendees will be able to:

• Identify the top mistakes made in M&A transactions and how to avoid them, or minimize their likelihood
• Differentiate between classic due diligence with an accounting emphasis and diligence focused on executive function & organizational effectiveness attributes
• Describe how to put into practice several working tools of the trade in assessing deal risk
• Orient their clients to the critical needs & considerations of the other party to the deal and why win-win is crucial to achieving THEIR desired outcomes

Total CPE: 2 hours
Field(s) of Study: Finance—1 hour; Management Services—1 hour

Who Should Attend:

CEOs, practitioners, investment bankers, capital providers

Program Level and Prerequisites:

Basic: Learning activity level most beneficial to individuals new to a skill or an attribute.

Advanced Preparation:

None

Tony Wayne

Tony  Wayne

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Hidden Income and Assets—A Forensic Accountant’s Process

Thursday, June 6
4:00 p.m.–4:50 p.m.
1 hour CPE
This session will explain how forensic accountants look at the big picture, both financially and by understanding past behaviors, to uncover items that may help them or their client. The Net Worth Method looks at the difference between a person or businesses net worth (total assets less total liabilities) on any two given dates. If the evidence collected can establish that net worth increased more than the receipts (i.e. income) received by a person/business in the form of money or property, less expenses, then this excess would be additional taxable income to that person or business. Also considered is discretionary spending, capital improvements, taxes, etc.

After completing this session, attendees will be able to:

• Apply the Net Worth Method in practice
• Analyze documents and balances to uncover fraud

Total CPE: 1 hour
Field(s) of Study: Accounting—1 hour

Who Should Attend:

CPAs, attorneys, practitioners, financial analysts

Program Level and Prerequisites:

Basic: Learning activity level most beneficial to individuals new to a skill or an attribute.

Advanced Preparation:

None

Josh Shilts

Josh  Shilts

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Someone Needs to Go—Counseling a Client through a Business Divorce

Friday, June 7
10:10 a.m.–11:50 a.m.
2 hours CPE
This session will deal with real life Business Divorce issues experienced by a attorneys and financial experts during engagements. A seasoned attorney and forensic expert will discuss how the professional service team deals with day to day issues raised during Business Divorce engagements. Topics to be discussed include dealing with shareholder owner bad acts, how parties decide to separate the business relationship, can they continue in their business relationship, proving oppression or dissension claims. How experts and counsel work together to assist the parties through the process from complaint to litigation. The presenters will use real life case war stories to reinforce the material presented.

After completing this session, attendees will be able to:

• Inform the attendees of the day to day issues faced in contentious Business Divorce engagements
• Discuss techniques used in the discovery process and how to use that information in their cases
• Identify pitfalls and trouble areas where experts can get into when relying on assumption without challenging them

Total CPE: 2 hours
Field(s) of Study: Accounting—1 hour; Management Services—1 hour

Who Should Attend:

Valuation analysts, forensic accountant and attorneys.

Program Level and Prerequisites:

Intermediate: Learning activity level that builds on a basic program most appropriate for individuals with detailed knowledge in an area.

Advanced Preparation:

Knowledge of Business Divorce engagements

Hubert Klein

Hubert  Klein

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Valuation of Preferred Stock—A Case Study of Recapitalization of Closely Held Businesses

Friday, June 7
12:50 p.m.–1:40 p.m.
1 hour CPE
A workshop on how to value preferred stock in accordance with Revenue Ruling 83-120. This type of valuation is used for estate and gift tax engagements where a client receives preferred stock and transfers common stock as a gift to a relative. The presentation will include the approach and factors described in RR 83-120 directed to determine the fair market value of the common stock and the preferred stock that is substantially less than par value. A case study will include actual example of a valuation engagement including worksheets and report narrative. Participants will receive valuation models used in the valuation of preferred stock.

After completing this session, attendees will be able to:

• Explain the approaches and factors required to value preferred stock in accordance with RR 83-120
• Describe the methodologies used to value corporate recapitalizations
• List the steps required to value preferred stock
• Calculate the important variables required to value preferred stock
• Explain where to find industry comparables
• Value the effect of preferences and rights of the preferred stock, and able to calculate yields, dividend coverage, and protection of its liquidation preferences

Total CPE: 1 hour
Field(s) of Study: Taxes—1 hour

Who Should Attend:

CPAs, CVAs, ABVs, ASAs, attorneys, estate planners, succession planners, investment bankers, brokers

Program Level and Prerequisites:

Intermediate: Learning activity level that builds on a basic program most appropriate for individuals with detailed knowledge in an area.

Advanced Preparation:

None

Garth Tebay

Garth  Tebay

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Valuing Businesses in Conflict Situations

Friday, June 7
2:00 p.m.–3:40 p.m.
2 hours CPE
This session will be talking about Valuing businesses in conflict situations. This raises several issues such as independence and objectivity from an engagement perspective. But also questions as to the valuation principles applied; can we use fair market value or should we use economic value. Is it fair to take into account the debt service capacity of the company having to (ultimately) finance the transaction between the quarreling parties? Is there a difference in valuation approach between shareholders parting ways or shares being part of the estate in a divorce? Should we or should we not discount for minority shareholdings?

Another issue we might encounter in these situations is the availability of data or rather the lack thereof, let alone the availability of agreed upon forecasts.

Lastly the presenter will touch on some international aspects of valuing a business, different tax regimes, and different requirements to the method of valuing businesses.

After completing this session, attendees will be able to:

• Describe the engagement acceptance and formulating the assignment of valuing businesses in conflict situations
• List the valuing methods to apply in conflict situations

Total CPE: 2 hours
Field(s) of Study: Behavioral Ethics—1 hour; Economics—1 hour

Who Should Attend:

CPAs, valuators, any practitioners who are interested in developing and advancing their skills in this topic.

Program Level and Prerequisites:

Intermediate: Learning activity level that builds on a basic program most appropriate for individuals with detailed knowledge in an area.

Advanced Preparation:

None

Erik-Jan Hennis

Erik-Jan  Hennis

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The Appraiser’s Role as Neutral or Trier of Fact

Friday, June 7
2:00 p.m.–3:40 p.m.
2 hours CPE
An experienced appraiser’s skills can assist parties in disputes when the appraiser acts as an independent third party, such as a neutral, trier of fact, such as an arbitrator or mediator. These roles can be initially challenging for people who are more comfortable dealing with numbers rather than resolving disputes. However, those skills can be developed. This session will help appraisers interested in Alternative Dispute Resolution (ADR) develop those skills by describing the different contexts and challenges, and giving some practical suggestions for appraisers who are willing to perform these roles.

After completing this session, attendees will be able to:

• Describe the need for capable appraisers to assist all the parties in resolving valuation disputes
• Identify the different ADR forums and the appraiser’s role in each
• Describe the need for capable appraisers to assist all the parties in resolving valuation disputes
• Identify the differences between consultant/expert and neutral/trier of fact
• Identify resources and processes to help in these assignments
• Decide how to protect themselves and their work in these roles
• Identify necessary supplemental skills outside of analytics
• Decide if they want to accept assignments in these roles

Total CPE: 2 hours
Field(s) of Study: Business Law—1 hour; Finance—1 hour

Who Should Attend:

Experienced appraisers who have worked in dispute settings.

Program Level and Prerequisites:

Advanced: Learning activity level most useful for individuals with mastery of the particular topic. This level focuses on the development of in-depth knowledge, a variety of skills, or a broader range of applications.

Advanced Preparation:

Experience in dispute settings as consultant, expert, or neutral.

Terry Lloyd

Terry  Lloyd

CPA, CFA

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Eminent Domain—A Professional's Guide to Expert Witnessing in Condemnation Cases

Friday, June 7
4:00 p.m.–4:50 p.m.
1 hour CPE
Eminent Domain, also called "condemnation", is a power vesting in governments and utility companies that permits the taking of property, and businesses, for the betterment of the community and for infrastructure projects. Billions of dollars in value are condemned every year and very often require business valuation that ends up in litigation. Here we will explore this niche practice space so that you can enter it confidently knowing how to tackle the many complex and unique issues inherent in it, whether your client is the condemning authority of the condemnee.

After completing this session, attendees will be able to:

• Explain the comprehensive nature of eminent domain, the complexities in those cases, how to enter the practice space, and how to best serve your client
• Identify the common pitfalls of experts who are unfamiliar with this area of practice

Total CPE: 1 hour
Field(s) of Study: Accounting—1 hour

Who Should Attend:

CPAs, Attorneys, Business Valuation Analysts, Financial Forensic Analysts, Litigation Specialists

Program Level and Prerequisites:

Overview: Learning activity level that provides a general review of a subject area from a broad perspective.

Advanced Preparation:

Practice in eminent domain is premised in business valuation and, therefore, being experienced in BV is essential.

Chris Edwards

Chris  Edwards

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