Second Annual Business Valuation Conference Features Hot Topics for 2002

By Morton M. Cohen and Mark S. Warshavsky

Following the success of last year’s conference, the Business Valuation Committee of the New York State Society of CPAs is hosting its second annual Business Valuation Conference on June 17.

To be held at the Sheraton Hotel in New York City, this event is a must for CPAs and others who perform business valuations.
Like last year, the committee has once again assembled a stellar list of speakers, including members of the valuation community, a Supreme Court justice, a former bankruptcy judge and a representative from the Internal Revenue Service (IRS). They will present topics on the cutting edge of business valuation.

Roger Grabowski, ASA, a nationally recognized valuation authority, will offer valuable new insights in his presentation, “The Bubbling Pot in Marketability Discounts.” As managing director of Standard & Poor’s Corporate Value Consulting Division, Mr. Grabowski will share his expert knowledge and discuss the various old and new studies on marketability discounts as they relate to this volatile and timely topic.

Brian H. Burke, ASA, a past president of Connecticut’s ASA Chapter, will present an update on the impact of S Corporation status on fair market value. The treatment of this corporate entity has generated continual controversy in the valuation community for many years. Case law is now surfacing that may help provide answers to the dilemma of S Corp./C Corp. valuations.

The Honorable Francis G. Conrad, a former United States bankruptcy judge, will provide participants with insight into the mechanics of valuations in bankruptcy. In light of recent economic events, this topic is of interest to all practitioners. Judge Conrad currently is a director in the Business Regeneration Group of PricewaterhouseCoopers, LLP.

Brian Pearson, CPA, ABV, ASA, president of Valuation Advisors, LLC, will explain SFAS 141 (Business Combinations) and SFAS 142 (Goodwill and Other Intangible Assets) and the business opportunities they present to the business valuator. The CPA Expert has published Mr. Pearson’s firm’s annual studies on the lack of marketability discounts.

Justice Virginia E. Yancey of the New York State Supreme Court will be the conference’s luncheon speaker. Judge Yancey will reveal the pitfalls of valuation courtroom testimony as she reminisces on the errors made by expert witnesses who have testified before her in business valuation cases.

Internet research has become an integral part of the business appraiser’s information-gathering process. Jan Tudor, president of JT Research LLC and the former library director at Willamette Management Associates, will discuss the many Internet resources available to the appraiser. This presentation will greatly enhance the practitioner’s valuation research capabilities.

The IRS has centralized its decision-making authority for Service-wide valuation policies in its newly created Valuation Policy Council. Come and listen to Jim Schmidt, an IRS representative and team manager of the Agency’s Engineering and Valuation Division in Baltimore, discuss the progress made by the Service. Learn about the IRS’ attitude toward valuation assignments, as set forth in the “Proposed Revised Guidelines for the Appraisal of Real and Personal Property and Interests in Business Enterprises.”

William F. Chandler, CPA, ABV, ASA, JD, CFA, will provide an update on state and federal court cases relating to business valuation. Mr. Chandler is a managing director at Urbach Kahn & Werlin Advisors, Inc.

The 2002 conference will afford the unique opportunity to network with leading valuation professionals and peers, and will provide eight CPE credits to each attendee. All practitioners who are currently engaged in business valuation practice as well as those who want to enter the field will benefit from attending.