Current Trends

Goes by Many Names But Never the Same—Valuing Businesses in the Cannabis Industry

Wednesday, June 20
10:10 a.m.–11:50 a.m.
2 hours CPE (1 Taxes, 1 Accounting)
In this session, the presenters will discuss the nuances of valuing a business in the cannabis industry, concentrating on factors affecting the assessment of risk involved in an income approach. Included will be relevant discussion of the evolution of the industry, landmark case law, and legislative developments.

Learning Objectives:

After completing this session, attendees will be able to:

• Differentiate why valuing a cannabis industry enterprise is different than other industries.
• Recognize the effect of regulatory factors when valuing businesses in this industry
• Locate industry resources

Who Should Attend:

Practitioners and CPAs who want to gain an understanding of appraisal, accounting, and tax issues in the industry.

Program Level and Prerequisites:

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

Advanced Preparation:

None

Stacey Udell

Stacey  Udell

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Ronald Seigneur

Ronald  Seigneur

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FASB Update on Issues Affecting Business Valuation

Wednesday, June 20
12:50 p.m.–1:40 p.m.
1 hour CPE (1 Accounting)
In this session, a FASB staff member will discuss upcoming accounting standards that may affect business valuations. The presenter will cover the Private Company Council and the Board’s latest efforts on financial reporting.

Learning Objectives:

After completing the session, attendees will be able to:

• Explain recent activities of the FASB and PCC that may affect business valuations
• Critique any feedback on standards from the valuation community

Who Should Attend:

Business professionals, CPAs, practitioners, etc.

Program Level and Prerequisites:

Update: Learning activity level that provides a general review of new developments.

Advanced Preparation:

None

Chandy C. Smith

Chandy C.  Smith

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Beliefs, Behaviors, and Fraud in Valuations

Wednesday, June 20
2:00 p.m.–2:50 p.m.
1 hour CPE (1 Personal Development)
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. This is a form of fraud when deliberately performed.

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 it takes place.

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. Revenge for some wrong 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—the list is a long one.

Learning Objectives:

After completing this session, attendees will be able to:

• Describe the Fraud Triangle and how it applies to Valuation Cases
• Describe the Dark Triad Personality among Predators
• Identify the desire to keep up with the Jones Family
• List grudges to be avenged
• Identify other motivators for fraud
• Indicate signals that the numbers are inflated, deflated, or just wrong
• Identify how shame can be good and how shame can trigger incentives for fraud
• Describe Red Flag Behaviors

Who Should Attend:

Anyone interested in learning about how beliefs and behaviors can lead to fraud in valuations.

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. Sri Ramamoorti

Dr. Sri  Ramamoorti

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David E. Morrison, III

David E.  Morrison, III

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What I've Learned from Tax Court and IRS Gift and Estate Tax Audits

Wednesday, June 20
3:10 p.m.–4:50 p.m.
2 hours CPE (1 Finance, 1 Taxes)
Based on the presenter's experience in tax court and some recent audits of family limited partnerships, his session will share some of the knowledge he has learned about how the audit to tax process works. Also, in both of these audits, he will use them as a case study to show how he valued the interest and how the IRS attacked them. Both Tax Court cases and both audits turned out in favor of the taxpayer.

Learning Objectives:

After completing this session, attendees will be able to:

• Identify how the Tax Court process works
• Identify some of the red flags that might draw IRS Scrutiny
• Analyze two case study IRS audits to help build a stronger appraisal report in the future
• Prepare themselves for future audits, appeals, and Tax Court testimony

Who Should Attend:

CPAS, attorneys, and practitioners.

Program Level and Prerequisites:

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

Advanced Preparation:

None

Bruce Johnson

Bruce  Johnson

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Update—Business Divorce Litigation Current Trends

Thursday, June 21
10:10 a.m.–11:50 a.m.
2 hours CPE (1 Accounting, 1 Personal Development)
This session will focus on common and unique attributes that arise in business divorce for non-public companies from the attorney and expert perspective. It will include difficulties faced in obtaining discovery when representing minority owners, impact of negative inferences, valuation issues/limitations under state statutes/case law, and issues faced in the complaint and counter-claims process. Current update of various state laws and trends in business divorce litigation.

Learning Objectives:

After completing this session, attendees will be able to:

• Identify real-life issues encountered and how to respond to them in a business divorce action
• Interact with counsel to address issues encountered in business divorce engagements
• Demonstrate knowledge in investigating claims and identify relevancy or impact to the case
• Demonstrate skills to effectively ask information-seeking questions for use in a shareholder dispute or forensic report

Who Should Attend:

Fraud and litigation practitioners who offer fraud or litigation services. Business valuation analysts at all levels. Sole practitioners as well as CFOs, controllers, and financial managers in business and industry. All other senior financial professionals involved in business divorce litigation.

Program Level and Prerequisites:

Update: Learning activity level that provides a general review of new developments.

Advanced Preparation:

None

Hubert Klein

Hubert  Klein

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David Roberts

David  Roberts

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Leverage Technology and Virtual Teams to Scale Your Practice

Thursday, June 21
12:50 p.m.–1:40 p.m.
1 hour CPE (1 Information Technology)
For the last 10+ years technology and virtual employees have changed the valuation practice landscape. This has caused 'old school' valuation practices to close shop or merge into emerging ones. In this session, the presenter will discuss how to leverage tools to scale ones practice. Inspired by the book "The 4-Hour Work Week" by Tim Ferriss, he will discuss how to use technology and virtual employees from marketing, sales and development to litigation and audit reviews.

Learning Objectives:

After completing this session, attendees will be able to:

• Describe latest technology trends for practice management
• Identify future technology trends and reduce long term switching costs
• Identify how to leverage this technology to manage virtual teams
• State the best ways to hire and delegate to remote employees
• Describe how If the above tools are leveraged correctly, practice leaders can improve their gross margins by 35%

Who Should Attend:

Practice leaders, CEOs, CPAs, CVAs, directors.

Program Level and Prerequisites:

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

Advanced Preparation:

None

Bharat Kanodia

Bharat  Kanodia

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Important Strategies for Mitigating IRS Scrutiny of Valuations—A Practical Approach

Thursday, June 21
2:00 p.m.–2:50 p.m.
1 hour CPE (1 Taxes)
As many know, opinion of value has been the key driver for many recent IRS audits and notices, particularly as it pertains to estate, gift, and personal income tax planning. For those providing valuation services, understanding the issues that increase the risk of IRS scrutiny goes beyond the four corners of the report. The presenter looks to provide insight as to those "hot topics" the IRS has identified that increase this risk of scrutiny. He will also discuss the practical issues that need to be addressed to mitigate this IRS risk of review and audit that can be of greatest concern to both clients and their advisors.

Learning Objectives:

After completing this session, attendees will be able to:

• Summarize the hot topics and protocol that the IRS focuses on in their review of qualified appraisals
• Describe the nuances of the reporting that may unwittingly bring on IRS scrutiny
• Discuss specific tax issues that commonly arise that demand additional attention from the appraiser (this includes, but is not limited to valuations of carried interest, S corporations, and special assets [such as fine art, jewelry, and collections])
• Identify those circumstance that may require additional care, such as the timing and number of the appraisals needed by taxpayers seeking appraisals for different reasons (i.e., ESOP appraisals versus buy/sell appraisals)

Who Should Attend:

CEOs, CPAs, attorneys, and practitioners.

Program Level and Prerequisites:

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

Advanced Preparation:

None

Charles F. Schultz III

Charles F.  Schultz III

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Use of Data-Science Tools to Find Hot Topics, Relationships, and Red Flags in Unstructured Data

Thursday, June 21
3:10 p.m.–4:50 p.m.
2 hours CPE (1 Computer Software & Applications, 1 Business Law)
Whether mired in litigation, looking for “smoking guns” in an investigation or in a due-diligence effort for a merger, acquisition, or receivership, we are most interested in summarizing data to find what is going on, to look for useful relationships and to identify anomalies that require further review. However, nearly 90% of information we leverage is in electronic form and, of this, 80% is in unstructured form. Unstructured data is particularly bothersome, frustrating our quest for the truth. Not to fear! The presenter will discuss how a synergy between data-science tools in information retrieval, natural-language processing, and graph databases provide an efficient means to vital insights that would, otherwise, be lost!

Learning Objectives:

After completing this session, attendees will be able to:

• Describe what priceless information can be gleaned from their troves of unstructured data
• Identify useful tools to summarize ad correlate data
• Identify how to hone in on anomalies requiring priority review
• Describe how to remain progressive and competitive in an unstructured-data world that is only getting worse
• Identify how to leverage open-source tools for cost-conscious, interactive solutions
• Identify that they have all of the necessary information needed for their litigation matter, investigation, merger, acquisition or receivership matter

Who Should Attend:

Attorneys, litigation consultants, investigators, C-level executives, CPAs, or anyone who needs to better understand a matter (e.g., litigation, investigation, M&A, receivership, etc.).

Program Level and Prerequisites:

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

Advanced Preparation:

None

Paul Starrett

Paul  Starrett

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