AMERICAN SOCIETY OF APPRAISERS PHILADELPHIA CHAPTER 2015 BUSINESS VALUATION SEMINAR. Venue: DoubleTree Suites by Hilton Hotel, Plymouth Meeting, PA

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1 AMERICAN SOCIETY OF APPRAISERS PHILADELPHIA CHAPTER Date: Friday, April 24, BUSINESS VALUATION SEMINAR Venue: DoubleTree Suites by Hilton Hotel, Plymouth Meeting, PA Program: The program features sessions focused upon (i) Unlocking Private Company Wealth A Tutorial for Business Advisers (including at no additional cost a copy of Chris Mercer s latest book Unlocking Private Company Wealth); (ii) the Implied Private Company Pricing Model; (iii) drafting engagement letters that align the appraiser s and client s expectations, and minimize the risk of disputes and claims, and (iv) recent federal income, gift and estate tax case law developments which affect the business appraiser. The one-day seminar will earn attendees eight (8) continuing education credit hours. 8:00 8:30 AM Registration and Complimentary Breakfast Buffet 8:30 10:30 AM Unlocking Private Company Wealth A Tutorial for Business Advisers, presented by Z. Christopher Mercer, ASA, CFA, ABAR It is important for business advisers to understand how to talk to their business owner clients about private company wealth. An increasing number of closely held and family business owners are facing ownership or management transition. Therefore, the time is now to begin talking with them about the critical issues surrounding these transitions so that the appraiser will be part of the team working with them to help them achieve their goals. Chris Mercer will present concepts found in his newest book, Unlocking Private Company Wealth. Chris will walk through key portions of the book and talk about the implications for business owners while relating the content to business advisers. He will not only discuss ideas and concepts that will enhance the quality of conversations an appraiser has with business owners, but also provide reallife examples of these concepts in action. Each attendee will receive, at no charge, a copy of Mr. Mercer s latest book, Unlocking Private Company Wealth. Z. Christopher Mercer is the founder and chief executive officer of Mercer Capital. Mr. Mercer began his valuation career in the late 1970s. He has prepared, overseen, or contributed to more than a thousand valuations for purposes related to M&A, litigation, and tax, among others. In addition, he has served on the boards of directors of several private companies and one public company. Mr. Mercer has extensive experience in litigation engagements including statutory fair value cases and business damages and lost profits. He is also an expert in buy-sell agreement disputes. 1

2 Designations held by Mr. Mercer include Accredited Senior Appraiser from the American Society of Appraisers, Chartered Financial Analyst from the CFA Institute, and Accredited in Business Appraisal Review from the Institute of Business Appraisers. 10:30 10:45 AM Refreshment Break 10:45 12:15 PM The Implied Private Company Pricing Model: In the Land of the Blind, the One- Eyed Man is King, presented by Bob Dohmeyer, ASA Mr. Dohmeyer will (i) discuss why appraisers should consider using the Implied Private Company Pricing Model ( IPCPM ) given problems with the build-up method ( BUM )/modified CAPM; (ii) describe the IPCPL (the Implied Private Company Pricing Line or IPCPL, the foundation behind the IPCPM), how it was created and the fact that it solves the major problems with the build-up method, and (iii) introduce the IPCPM: A Cost of Capital Calibrator that calibrates the BUM to the IPCPM. After completing the session, attendees will: Better understand the reliability issues with the build-up method/modified CAPM; Learn how the IPCPL/IPCPM solves these inherent problems; Be introduced to the IPCPL/PCPM and how it was created; Be introduced to other insights regarding the use of private company transaction data such as inherent growth rates of certain types of companies; Be in a position to consider adopting the IPCPL/IPCPM to mitigate guesswork and improve reliability when estimating a privately-held company s cost of capital; and Be introduced to the BUM WACC calibrator so that appraisers can continue to use the model to which they are accustomed but also have the empirically sound IPCPL/IPCPM to calibrate problematic BUM inputs. Bob Dohmeyer is founder of Dohmeyer Valuation Corp., a business valuation and M&A consulting firm. Mr. Dohmeyer provides professional valuation advice and appraisals primarily for bankruptcy and family law matters. He also specializes in complex valuation issues and provides consulting work for other appraisers in this regard. Mr. Dohmeyer has lectured and published several papers on various valuation topics and is on the editorial review board of the Journal of Business Valuation & Economic Loss Analysis and on the Review Board of the Business Valuation Review. Prior to forming Dohmeyer Valuation Corp., Mr. Dohmeyer was employed by a Fortune 100 conglomerate where he held numerous management positions and was responsible for estimating the firm s cost of capital, analyzing and evaluating merger and acquisition candidates and hedging/trading crude oil. Mr. Dohmeyer is the codeveloper of the IPCPL and the IPCPM. He received a Bachelor s degree in Finance from California State University, Fullerton and is an ASA. 2

3 12:15 1:15 PM Complimentary Buffet Lunch 1:15 2:15 PM The Implied Private Company Pricing Model (IPCPM): In the Land of the Blind, the One-Eyed Man is King (Continued) 2:15 3:25 PM Our Biggest Protection - Engagement Letters, presented by Stacey Udell, CPA/ABV/CFF, ASA, CVA Stacey Udell will discuss how well-drafted and well-communicated engagement letters not only align appraiser and client expectations from the start, but also substantially reduce the risk of disputes and claims arising later. We will have an interactive discussion about engagement letters, their contents and limitations, wording that works and others that may cause problems later. Ms. Udell, a partner in the public accounting firm of Gold Gerstein Group LLC, specializes in the valuation of privately held business and stock options for purposes of litigation support (marital dissolution, shareholder disputes, lost profits claims, and other matters), acquisitions, sales, buy-sell agreements, ESOPs, succession and estate planning and compliance, and bankruptcy. She also performs economic analyses for personal injury claims, wrongful termination and wrongful death actions. Additionally, she provides accounting, tax, and consulting services for closely held and family businesses. Ms. Udell is a 1993 graduate of the University of Delaware where she received a Bachelor of Science in Accounting. She is a Certified Public Accountant, Certified Valuation Analyst and was an Accredited Senior Appraiser before becoming inactive in Additionally, she is Accredited in Business Valuation and Certified in Financial Forensics, and is a member of the American Institute of Certified Public Accounts ( AICPA ), the National Association of Valuation Analysts ( NACVA ), and the New Jersey Society of CPAs. She is currently a member of the AICPA s Forensic and Litigation Services Committee and chair of the AICPA s Family Law Task Force. Ms. Udell was a member of the planning committee for the 2013 and 2014 AICPA Forensic and Valuation Services Conferences, will vice-co-chair the 2015 AICPA Forensic and Valuation Services Conference, and will co-chair the conference in 2016 and She was a founding member of the AICPA s CFF examination development committee from its inception through In addition, Ms. Udell was Vice President of the New Jersey State NACVA Chapter from 2008 to She was past Chairperson of the NACVA Litigation Forensic Board, a founding member of the course development team for the Advance Matrimonial Litigation Support Workshop, and a member of the course development team for the Matrimonial Litigation Support Workshop. Ms. Udell has both presented and published on numerous topics on business valuation and litigation support. She is on the Panel of Experts of the Financial Litigation and Valuation Expert publication. She is a contributing author to Business Valuation Resources Healthcare Industry Valuation Guide related to the valuation of medical practices for divorce purposes 3

4 and to the Family Law Services Handbook published by John Wiley & Sons, Inc. 3:25 3:40 PM Refreshment Break 3:40 4:40 PM Case Law Developments: Where are we now?, presented by Laura E. Stegossi, Esquire Attorney Stegossi will provide an overview of recent selected tax court decisions which are pertinent to business appraisal. A summary of key points from those cases will be provided and possible trends relating to fair market value, discounts, and other matters will be discussed, as well as whether there are any new lessons to be learned from these cases. Laura E. Stegossi is a graduate of the University of Pennsylvania, summa cum laude, with a degree in Classical Studies. Ms. Stegossi received her J.D. from Temple University Beasley School of Law where she was a member of the Law Review. She received the degree of Masters of Laws in Taxation from Villanova University School of Law. Ms. Stegossi concentrates her practice in estate planning, trust and estate administration, and guardianship matters. She regularly represents owners of familyowned businesses. Ms. Stegossi is a member of the Pennsylvania and New Jersey bars. She is on the Executive Committee of the Philadelphia Bar Association s Probate and Trust Law Section and is currently Vice Chair of the Section. For the past several years, Ms. Stegossi has been an adjunct professor at Temple University Beasley School of Law in the Graduate Tax Program. Continuing Education Credits: Eight (8) credit hours for ASA purposes. ASA National is a NASBA sponsor and has advised the Philadelphia Chapter that the PA Board of Accountancy and other state boards will honor CEs from our program for CPAs. In addition to NASBA, the ASA is a sponsor to other organizations, and any questions regarding CEs can be directed to Bob Haas at rhaasjr@rmha.com or (215) Seminar Fee (including Chris Mercer s book Unlocking Private Company Wealth, lunch, and morning and afternoon refreshments): Early Bird Special: For registration forms and payments submitted by March 13: ASA Members: $310 Non-ASA Members: $340 After March 13: ASA Members: $340 Non-ASA Members: $370 4

5 A registration form is provided at the end of this material. Lodging: Contact Doubletree Guest Suites at Plymouth Meeting, Other Important Facts: The Doubletree Guest Suites Plymouth Meeting is located near Philadelphia (approximately a thirty minute drive) in the suburb of Plymouth Meeting, and across the street from the Plymouth Meeting Mall that features numerous dining and shopping options, as well as a ten minute drive from the famed King of Prussia shopping mall complex. ( Information: Bob Haas, ASA at rhaasjr@rmha.com, or Joanne Paciello at asaphiladelphia@verizon.net To Register: Please complete and return the following section and submit your payment. To pay online with a major credit card or PayPal go to or otherwise please make checks payable to ASA Philadelphia Chapter 35 and mail to Executive Secretary Joanne Paciello, 8 Terrace Road, Plymouth Meeting, PA Please note that seating capacity is limited. Name: Company: Address: Telephone: Designation for which CE sought: Cancellation and refund policy: Refunds may be given depending upon the timing of a request, subject to a $35.00 service fee. A full refund will be given, less the service fee, provided a request is made by to asaphiladelphia@verizon.net no later than March 31, A 50% refund will be made for requests received after March 31, 2015 and before April 10, Refund requests after April 10, 2015, are subject to the discretion of the Philadelphia Chapter. 5