ICVPME Sessions

Monday, Oct. 5

8:30 a.m.-10:00 a.m.
Keynote and Introductions; Economic Outlook
Yelena Takhtamanova, Federal Reserve Bank, San Francisco

Federal Reserve Bank-This is a must-hear presentation covering the role of the Federal Reserve Bank in the financial community. The presentation will cover what matrixes are used by the Fed to measure the state of the economy along with the trigger points that signal change is coming. Given the global economic slowdown, the presentation will cover the facts and insights as to what caused it along with where in the cycle are we today and an estimate when will it recover. What are the indications that a recovery is under way, or is it going to be a sustained recession?

10:00 a.m.-10:30 a.m.
Refreshment Break

10:30 a.m.-Noon
Trend and Bend! "Valuation Data Modeling vs. Unit Price Approach"
Richard Blow, Founding Partner, AVP Valuers;
Robert van Raay, Managing Director, m3p&e

Richard Blow, a founding partner with AVP Valuers, has more than 21 years of professional plant and machinery valuation experience. Richard's experience is across an extensive range of industries. He has completed valuations for private, public, corporate, local, state and federal government agencies. He is a member of the Australian Property Institute and the Royal Institution of Chartered Surveyors and is a guest lecturer at Curtin University of Technology, School of Business post graduate property course.

Robert van Raay is managing director with m3p&e. Robert is an Accredited Senior Appraiser with the American Society of Appraisers, and a Fellow in both the Royal Institution of Chartered Surveyors and the Australian Property Institute. For more than 27 years, Robert has been providing plant and equipment valuations for clients around the world for many purposes and industry sectors.

Regardless of the current state of the global economy, there is a time and place for valuing plant and equipment assets using data modeling techniques. This presentation will consider the various approaches and methods that can be applied to different valuation scenarios, including the advantages and disadvantages of using a modeling approach against a unit price approach.

Noon-1:00 p.m.
Luncheon

1:00 p.m.-2:00 p.m.
Are We Raising the Global Standard?
Brad Wagar, B.Sc., AACI, FRICS, Chair, Professional Board, International Valuation Standards Council (IVSC); President and Owner, Bradford Capital Corporation

Brad Wagar is president and owner of Bradford Capital Corp. Inc. He has held senior positions with a Canadian trust company, investment dealer and institutional development company. He also joined BCMP Architects Inc. in 2008 as Director, Strategic Services. Brad is an accredited appraiser, past president and a Fellow of the Appraisal Institute of Canada. He is also an Eminent Professional Member and Fellow of the Royal Institution of Chartered Surveyors, founding chair of the Toronto Valuation Accord, chair of the International Valuation Professional Board and member of the Canadian Accounting Standards Board (AcSB).

Much of the world of valuation confuses "standards" and "best practices." There are several regulatory bodies, such as IASB and FASB, which find the valuation world lacking in accepted guidance on best practices even when acceptable standards exist. The IVSC has addressed this issue through establishment of a board to address best practices, which has been named the Professional Board and chaired by Brad Wagar. He will differentiate the work of the IVSC boards and outline the plans of the Professional Board to address acceptable best practices. The learning objective of this session is to gain understanding of how valuation standards and best practices in valuation will be promulgated by the IVSC.

2:00 p.m.-4:00 p.m.
Does It Matter Where an Asset Is Located? Locational Effects on Value
Rajeev Shah, Managing Director of RBSA Advisory (R B Shah & Associates), India

Rajeev Shah is the managing director of RBSA Advisory (R B Shah & Associates), which is one of the largest full-service valuation consulting firms in India with capabilities across the full spectrum of financial valuations, business valuation, valuation of intangible assets, valuation of real estate, plant and machinery, valuation of infrastructure assets, valuation of mines and mineral reserves, etc. Rajeev is also an Eminent Member of RICS (Royal Institution of Chartered Surveyors, UK) in India and a winner of the prestigious TATA Finance Award. He is a Gold Medalist in Master of Valuation (Real Estate), as well as Gold Medalist in Master of Valuation (Plant and Machinery). He was also the recipient of a Gold Medal in his M.B.A. and a Silver Medal in the prestigious Chartered Financial Analyst examinations.

Appraisers and valuers today frequently are involved in cross-border valuation assignments. As such, there are legal, tax, accounting, environmental, etc., considerations that must be understood to properly reflect on facts and circumstances impacting value. Rajeev, through his experience in India, Asia and Europe, will set forth some of his observations that appraisers need to consider. The learning objective of this session is to gain understanding of valuation factors driven by the location/use of an asset.

3:00 p.m.-3:15 p.m.
Refreshment Break

3:15 p.m.-4:15 p.m.
Big Boys' Toys—Locomotives
Edward D. Biggs, III, LLC, ASA, President, D.B.A. Biggs Appraisal Service

Edward Biggs is an Accredited Senior Appraiser with the American Society of Appraisers and a graduate of the University of Illinois. His practice, Biggs Appraisal Service, is focused on the inspection and valuation of rail cars and locomotives. He has spent more than 32 years in the railroad industry with a mix of significant experience with railroads and rail equipment leasing companies including experience in fleet operations, mechanical, and sales. Ed has specific in-depth knowledge of railcar extended life, upgrade programs and railcar and locomotive rebuilding programs. He also researches a wide variety of subjects to support valuations and rail industry related consulting projects for his clients as well as his quarterly publication, Subjects of Value.

This session will be an overview of the North American Railroad System. The presentation is not limited to new and used locomotives, but also includes different railcar types. The market and valuation of this industry will be addressed during this presentation. Ownership and leasing of these fleets will also be discussed.

4:15 p.m.-5:15 p.m.
Meet the Speakers: Review of Sessions

Tuesday, Oct. 6

8:30 a.m.-10:00 a.m.
Plant Machinery Valuers—Impact from the Alphabet Soup of Accounting
Robert S. Svoboda, PE, ASA, Director, Deloitte Financial Advisory Services LLP;
Robert Stall, Principal, Ernst & Young LLP

Robert S. Svoboda is a Director of Deloitte Financial Advisory Services LLP. He has conducted valuation and economic analyses in North and South America, Europe and Asia and has appraised securities, intangible assets, machinery and equipment and real estate, as well as entire businesses. Robert has more than 25 years of experience as a valuation consultant specializing in large complex assignments. He has been involved in performing and managing virtually all aspects of valuation including mergers and acquisitions, bankruptcies and various federal, state and local tax matters. Prior to joining Deloitte Financial Advisory Services LLP, he was the Director of Valuation Services for Avail Consulting and worked at KPMG Peat Marwick LLP's Houston office and in Coopers & Lybrand's Chicago and Houston Regions. He also spent 15 years with American Appraisal Associates. He holds an M.B.A. from the University of Wisconsin, Milwaukee, and a bachelor of science in mechanical engineering from the Milwaukee School of Engineering and is a Registered Professional Engineer.

Robert Stall is a Principal with Ernst & Young LLP and holds bachelor's of science degrees in both accounting and finance from Miami University. Robert is an Accredited Senior Appraiser with the American Society of Appraisers, accredited in machinery and technical specialties. He has 21 years of experience in the appraisal industry and has provided valuation and consulting services in more than 28 countries for both tax reporting and financial accounting purposes.

Robert Svoboda and Bob Stall will discuss the various accounting pronouncements including SFAS 141(R), 142, 144, 157 and IFRS. The goal of this session is to answer the questions: "What do these statements mean to the PM valuer and how are they impacting us and our profession?" The presenters will share their experiences in dealing with machinery and equipment valuations prepared for accounting purposes. The learning objective of this session is discussion of the basic requirements of each pronouncement, key definition discussion with commentary on the underlying assumptions and possible interpretations of the myriad of pronouncements. In addition, SAS review requirements and their application in the marketplace will be covered.

10:00 a.m.-10:15 a.m.
Refreshment Break

10:15 a.m.-11:15 a.m.
Russian National Appraisal Standards
Hakob Sarkissian, Managing Partner, Ernst & Young CIS Transaction Advisory Services, Moscow

Hakob Sarkissian is managing partner, Ernst & Young CIS Transaction Advisory Services; a member of Ernst & Young Global Advisory Council; general director, Ernst & Young Valuation LLC; and general director, Ernst & Young Valuation Advisory LLC. He holds an M.B.A. from The University of Chicago Graduate School of Business and a Ph.D. from the State Central Research and Design Institute for Building Structures in Moscow. He is a member of the Working Group on Intellectual Property, State Duma of the Russian Federation, an Accredited Senior Appraiser of the American Society of Appraisers with an honorary designation in Appraisal Review and Management and a member of the Royal Institution of Chartered Surveyors.

The presentation will cover the Russian valuation standards along with how they are monitored and enforced. The importance of these standards, as they relate to the global valuation environment needs to be understood. With all the multinational companies with interests in many countries, it is important to understand the requirements to be able to do a proper appraisal. You need to know the rules to play in the game. The Russian standards are quite stringent and thus are being viewed as a potential role model for implementation in other developing countries. The learning objectives of this session are the standards used in Russia; the regulatory environment; the influence in other developing countries; and the guide for multinational corporation valuations.

11:15 a.m.-12:15 p.m.
Evolution and Comparison of Appraisal Standards and Regulatory Issues
Roger Durkin, J.D., M.S., ASA;
Hakob Sarkissian, Managing Partner, Ernst & Young CIS Transaction Advisory Services, Moscow; (See above for Mr. Sarkissian's photo and biography)
Chengjun Wang, Ph.D., FCPV, CPA, ASA, Chairman and General Manager, DeveChina International Appraisal Company

Roger Durkin operates Durkin Law, PC, with two other attorneys and he operates Durkin Valuation Consultants at Lewis Wharf in Boston, holding designations in five appraisal disciplines. His appraisal practice encompasses the valuation of a wide range of property including real property, personal property and business valuation, all backed by expert witness support. Roger has been providing appraisals for 35 years for decedent estates, charitable donation, gift tax, probate, environmental and general civil litigation. His clients include attorneys, the FBI, USSS, U.S. Customs, IRS, Postal Inspection Service and the U.S. Marshals Service.

Chengjun Wang is a Certified Public Valuer (CPV), China Appraisal Society, FCPV, Fellow Member, China Appraisal Society, Certified Public Accountant (CPS), Chinese Institute of CPAs and American Society of Appraisers (ASA),Appraisal Review and Management. As the vice director of Chinese Valuation Standards Subcommittee, he led the standards subcommittee to draft and enact several important valuation standards, including Business Valuation Standard, Intangible Valuation Standard. he also has co-written several valuation textbooks, including Guidance to Intangible Assets Valuation Standards,published by Economy and Science Press and Guide to Business Valuation Standards, published by Economy and Science Press.

The session will include a discussion of the growing role of review appraisers in regulatory enforcement, the new paradigm of appraisal performance, Basel II and collateral risk management, OCC and other financial institution regulatory changes, IRS compliance, IAS 36 impaired assets and fair value, as well as evolution and comparison of the International Valuation Standards, AICPA Standards and USPAP.

12:15 p.m.-1:15 p.m.
Luncheon

1:15 p.m.-2:15 p.m.
The Changing Landscape of the Appraisal Standards and Industry in South America
Norberto J. Levin, ASA, CEO, Levin Global, Latin America

Norberto J. Levin, ASA, is CEO, Levin Global, an appraisal firm with six offices in Latin America. He is president of VAAC, the Argentina branch of ASA's Mexico Chapter, and a member of the Administrative Council, Poder Ciudadano, NGO, which is dedicated to promoting transparency in government activity. Additionally, he is a member of the MIT Club of Argentina. Norberto is a physicist by training, holding a degree from the Universidad de Buenos Aires. He served as a speaker at the 20th Pan American Appraisal Conference in Buenos Aires in 2002, and was a panel member at the 2003 ASA International Conference in Tampa, Fla.

The Latin American appraisal industry is on fire and no one knows that industry and marketplace better than Norberto J. Levin. Norberto's company has offices in Mexico, Brazil, Buenos Aires, Spain and soon in New York City. He is infinitely knowledgeable of that marketplace. Norberto is recognized throughout Latin America and the United States and speaks often on this topic. The learning objective of this session is for attendees to get an intimate view of this rapidly developing marketplace from this industry leader.

2:15 p.m.-3:15 p.m.
Risk Management's Role for a New Banking System
Ken Loso, Senior Instructor, The Globecon Group

Kenneth Loso has more than 35 years of experience in the banking industry, specializing in Credit and Risk Management. Ken has experience as a relationship manager in a large financial institution for both corporate names and financial institutions with extensive experience in Latin America and emerging markets in general. He has most recently held the title of Senior Risk Reviewer in Audit Risk and Review, where his role was leading and participating in audit reviews of risk-related entities. Previously, Ken held the title of Director of Global Risk Training for Citi Markets and Banking (Corporate) and Commercial Markets for five years and prior to this was the Director of Risk and Finance Training for Latin America at Citigroup International, where he has been responsible for the Risk Curriculum and Global Markets training, including the marketing and delivery of courses for external customers within the Latin American Training and Development Center. During his career, Ken has managed portfolios of corporations in Argentina, Brazil, Trinidad and Tobago and Uruguay, as well as portfolios of financial institutions within the United States and Mexico. This included marketing activities related to structured financial solutions and capital markets, derivatives, treasury, international trade, custodial services, correspondent banking products and services. He has served as a credit committee member in each country. He also held a position as Training Director in the Credit and Sales areas covering Brazil, Argentina, Uruguay, Paraguay, Bolivia, Peru and Chile, while starting up a customer training program for other banks in Brazil. Ken is also experienced in consulting and design, development and delivery of training in risk management disciplines, and is fluent in Spanish. He has lead projects as an internal consultant and instructor on behalf of Citibank to execute projects related to the reengineering of the credit process and procedures for three Mexican Banks. Ken has a B.A. degree with majors in Latin-American Studies and Spanish from Brigham Young University in Provo, Utah.

The recent collapse of AIG, Citigroup, Bank of America, Lehman Brothers and other institutions was tied to poor risk management policies of top senior executive at these institutions. Ken Loso is the foremost expert on responsible risk management. His presentation will set in place the new paradigm for responsible risk management in the banking industry. Ken and his company teach responsible risk management globally. His presentation sets the stage for how appraisers can better react with the broken banking industry as it rebuilds itself.

3:15 p.m.-3:30 p.m.
Refreshment Break

3:30 p.m.-4:30 p.m.
Current Status of Auto Industry and Resulting Impact on PPE Values
Leonard P. Devaney, ASA, MRICS, Director, Machinery and Equipment Advisory, Valuation and Financial Opinions, Stout Risius Ross Inc.;
Michael Crismyre, ASA, Senior Manager, Economic and Valuation Services, KPMG, LLP

Leonard P. Devaney is a director in the Valuation and Financial Opinions Group at Stout Risius Ross Inc. His concentration is in machinery and equipment appraisal. Leonard has more than 24 years of valuation consulting experience and is well versed in a variety of valuation issues concerning the domestic and international markets. He has provided valuation and consulting services for numerous purposes including, but not limited to, federal income tax compliance, financial reporting (SFAS 141, 142 and 144), ad valorem tax, leasing and financing. Leonard has significant valuation experience in a wide range of industries and has provided valuation consulting services in a number of countries including: the United Kingdom, the Netherlands, Germany, France, Spain, Italy, Romania, Ukraine, Hungary, Japan, China, Taiwan, India, Singapore, Canada, Mexico, El Salvador, Brazil and Uruguay. He has been heavily involved in the valuation of automotive parts suppliers for fresh-start accounting, purchase price allocation, impairment and other purposes. Prior to joining Stout Risius Ross Inc., he was a senior manager with Deloitte & Touche LLP's Financial Advisory Services Group.

Michael Crismyre is a senior manager in the Economic and Valuation Services practice for KPMG LLP in the Chicago office. He has 28 years of appraisal experience and is an Accredited Senior Appraiser with the American Society of Appraisers with a designation in Machinery and Technical Specialties. He is responsible for and involved in a wide range of valuation engagements for financial reporting purposes including SFAS 141, 142 and 144; tax filings including 864(e) interest allocations and FIRPTA analyses; audit-assist appraisal reviews; fresh-start accounting; asset-based financing; litigation support; condemnation proceedings; insurance placement; and a variety of other appraisal-related services. Michael has experience with a range of asset types including industrial, manufacturing, commercial, retail, healthcare, gaming, technology, telecommunication, energy, education, food service, hotel and utility use assets.

This session will familiarize you with the current status of equipment values as the American automobile industry restructures through bankruptcy and debtor-in-possession financing. Debtor-in-possession financing or DIP financing is a special form of financing provided for companies in financial distress or under Chapter 11 bankruptcy process. Usually, this security is more senior than debt, equity and any other securities issued by a company. It gives a troubled company a new start, albeit under strict conditions.

4:30 p.m.-5:30 p.m.
Meet the Speakers: Review of Sessions

Wednesday, Oct. 7

8:30 a.m.-9:30 a.m.
The Mining Industry—Capital Equipment Investment Impact On Value
Mr. Edward Lee, Managing Director of Duff and Phelps

Edward Lee is a Managing Director in the San Francisco office of Duff & Phelps, LLC. He has been employed by Duff & Phelps (and its predecessor organizations) for over 20 years in their Corporate Finance group. Prior to working for Duff & Phelps, he worked in line management and consulting roles in the mining industry. He holds a B.S. degree in Mining Engineering from Imperial College, London University.

9:30 a.m.-10:30 a.m.
Cultural Views on Ethics
Chengjun Wang, Ph.D., FCPV, CPA, ASA, Chairman and General Manager, DeveChina International Appraisal Company (Click here for Dr. Wang's photo and biography)

What one country may take for granted as the ethical and professional practice of appraisal and valuation may differ widely from the practices in other countries. Does that make differing practice unacceptable? What cultural knowledge is required to practice cross border so as to determine how one can function within ethical bounds? Chengjun will address this topic with particular emphasis on the view from China. The learning objective of this session is to gain an understanding and impact of cultural views and traditions on ethics of professional valuation practice.

10:30 a.m.-11:00 a.m.
Refreshment Break

11:00 a.m.-Noon
Impact of California Environmental Regulations on Energy Facility Valuation
William A. Monsen, Principal and Co-Owner, MRW and Associates Inc.

William Monsen is a Principal and co-owner of MRW and Associates. He has been providing technical and economic analysis for the energy industry for more than 25 years. He is an expert in utility resource planning, retail power procurement, due diligence for power generation projects, and independent power issues. William has provided expert witness testimony in numerous California regulatory proceedings concerning utility resource planning, the structure of the electric power market, the cost-effectiveness of new resource additions, power pricing for QF projects, the need for power, marginal cost analysis, revenue allocation, rate design, stranded costs, and California regulatory policies. In addition, he has provided litigation support in a wide variety of proceedings, working with attorneys to prepare cross-examination, data requests, and briefs. Prior to joining MRW in 1989, William was an energy economist with PG&E. He holds an M.S. in mechanical engineering from the University of Wisconsin-Madison.

The impact of environmental regulations on an energy facility's valuation depends on the regulatory structure, the facility's position relative to other market players and the availability of funds to offset compliance costs. Evaluating this impact is often complex and is particularly difficult for new regulations such as emerging restrictions on greenhouse gas emissions and for regulations that are tied to market mechanisms. California has in place a number of environmental regulations that impact energy facilities. William. Monsen will analyze California's regulations to identify the key factors that impact a project's valuation and the key questions that need to be answered in order to assess the impact of a regulation on a facility's valuation. What starts in California will affect the rest of the world, eventually.

Noon-1:00 p.m.
Luncheon

1:00 p.m.-2:00 p.m.
An Examination of the Changing World of Bankruptcy/ Recent Developments and the Automatic Stay
Weldon L. Moore III, Creel, Sussman & Moore LLP

Weldon L. Moore III is an attorney with the firm of Creel, Sussman and Moore LLP, in Dallas, Texas, specializing in the areas of bankruptcy and state and federal litigation. A member of the bankruptcy section of the American Bar Association; the State Bar of Texas; the Bar Association of the Fifth Federal Circuit; the American Bankruptcy Institute; the College of the State Bar of Texas; and the John C. Ford Inn of Courts, he frequently writes and speaks on bankruptcy issues.

The automatic stay is the ability for the bankruptcy court to have a look at the values and plan that may be set for the rehabilitation of the company. It allows time for decisions to be made without interference from creditors that could prevent or disrupt the ability for the company to move forward. It is in this area that appraisers can anticipate potential work. This session will explore how to approach the process of making a proposal to assist, and whom to contact to offer valuation services and how to explain why use of valuation experts can help a company move forward. It is at this point that appraisers may be needed to measure values to allow decisions on possible equity on assets, suggest potential sales that may be beneficial, assess depreciation as assets are used that could affect secured creditors or equity. Appraisers are many times engaged to help develop a plan that may provide partial or total disposal of assets. Bankruptcy, like USPAP, is a moving target with changes that can take place from one year to the next. It is essential that the appraisal community is made aware of these changes in order to make the correct statements and perform the appropriate work that truly is "value added" to the bankruptcy system. This is an opportunity for appraisers to be advised and get questions answered from an active bankruptcy lawyer who must interface with appraisers-all of this without hourly fees to obtain this advice.

2:00 p.m.-3:00 p.m.
The Appraisal and Sale of Dairy Processing Plants
Martin I. Davis, ASA, CEO, M. Davis Group, LLC

Martin I. Davis is an Accredited Senior Appraiser and longstanding member of the American Society of Appraisers. As principal auctioneer and appraiser for M. Davis Group, Marty has coordinated, directed and participated in thousands of appraisals and sales across a broad spectrum of industries-including heavy industrial, manufacturing and dairy and food processing. With more than 30 years of experience, Marty is an internationally recognized expert, especially in the dairy and food processing industries. He advises some of preeminent dairy processing companies in the United States on sales, liquidations, mergers and acquisitions and performs an ongoing role as the "go-to" appraiser and auctioneer for numerous related asset-based lenders, private equity firms and corporations.

M. Davis Group is THE leader in dairy processing and related industries auctions and appraisals, over¬seeing the appraisal and/or sale of tens of millions of dollars of equipment value since its inception. Like most industries, dairy processing is unique and requires a certain level of expertise to be a successful appraiser and auctioneer. This presentation will address the different types of dairy processing plants, typical plant flows and equipment, properly listing and categorizing equipment types, alternative uses for dairy processing equipment and other influences on the value and viability of plants and their underlying equipment. We will also discuss, among other things, milk supply and transportation costs, what distinguishes a survivor in the industry and why they survive and the sales cycle of a complete dairy processing plant and its components.

3:00 p.m.-3:15 p.m.
Refreshment Break

3:15 p.m.-4:15 p.m.
Meet the Speakers: Review of Sessions