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ASA International Past President, Ronald M. Seaman, FASA, passed away at 88 years old on Tuesday, March 10, 2020. Ron was the founder/president of Southland Business Group. He graduated Harvard University with an MBA, received a Bachelor’s Degree from Hamilton College, and was a business valuer for over 25 years, as well as a licensed real estate broker and qualified expert witness in federal, state, bankruptcy and tax courts.

Ron also was a frequent presenter and author, who participated at profession events and published numerous articles and a publication, LEAPS and the DLOM, a book that takes a closer look at LEAPS—or publicly traded put options—as proxies for determining the discount for lack of marketability (DLOM) on valuing privately held stocks.

Ron was an active member of ASA for 36 years and held many leadership positions, including most notably serving as ASA’s 2009-2010 International President.

As testament to his dedication and service, he was inducted into ASA’s College of Fellows in 2006 and was conferred the prestigious designation of Fellow (FASA), the highest honor ASA bestows.

The Seaman family has expressed thanks for the condolences and support from fellow ASA members. Read Ron’s obituary here.

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An inside look at why appraisers need to educate themselves on this important specialty.

By J. Mark Penny, ASA, ARM-BV, BV-IA

As practitioners, we may be asked to offer an opinion about the quality of the appraisal or appraisal review work. Any number of situations can lead to this, such as litigation or regulatory compliance. Once you’ve done a few reviews, you realize that review work can be tricky and things can go south for a host of reasons. When reviews go bad, they can get very bad, featuring personal attacks, logical fallacies, advocacy and gratuitous cherry-picking. Are those kinds of reviews effective? Are they ethical? Can you get sued for defamation?

If you offer opinions on the quality of another’s appraisal or appraisal review, you are probably performing an Appraisal Review. USPAP Standards 3 and 4 pertain to the development and reporting of Appraisal Reviews. Can your review work survive a cross examination test of USPAP compliance? When was the last time you did an in-depth analysis of USPAP or IVS?

Pondering these questions encouraged me to pursue ASA’s discipline-specific program in Appraisal Review and Management – “ARM”. This special program allows active Accredited Senior Appraisers (ASA) to earn a specialty designation in Appraisal Review and Management by submitting an application, completing AR201 and AR204 courses and submitting an appraisal review report to an examining committee. Experienced, non-members who hold designations in select compeer organizations may also participate in this special program through ASA’s Professional Education Equivalency Certification Program (PEECP).

It’s been a very beneficial decision. The course material, instructors and class experience helped me become a better appraiser and reviewer. The ASA classes offer a deep dive into many aspects of development and reporting of Appraisal Reviews, including relevant professional standards and analysis of issues in the work under review. The classes also provide a healthy dose of good common sense practice that can keep you out of the crosshairs or review boards and plaintiffs’ attorneys.

My instructors were great and the courses well prepared, but for me, the best feature of the ARM program is the opportunity to interact with the other students. Many of ASA’s other principles of valuation courses are populated with early-career participants. The ARM classes are different. Typically, classmates are seasoned professionals who work in various disciplines and countries. They bring a unique mix of experiences and can ask tough questions. Their broad perspectives are mind opening and enriching. I doubt you could meet such a diverse group in any other professional appraisal society.

If you want to benefit from ASA’s international and multi-disciplinary footprint – take up the ARM specialty designation. It pays unexpected dividends!

Learn more by visiting ASA online, or by calling (800) 272-8258 and speaking with an ARM Accreditation Specialist.

J. Mark Penny, ASA, ARM-BV, BV-IA, is managing director for Cherry Hill, NJ based Hempstead & Co., LLC, where he prepares valuation analyses of privately held firms for numerous purposes including recapitalizations, equitable distributions, estate planning, employee stock ownership plans, mergers and acquisitions, fairness opinions, purchase price allocation and calculation of economic damages. Mark is also experienced in estimating the value and useful life of intangible assets including goodwill, customer lists, franchises, trademarks, tradenames and professional degrees. He has prepared valuations for a wide range of businesses including manufacturing companies, communications firms, various professional practices, small businesses and agricultural enterprises. Additionally, he has been qualified as an expert witness and testified in New Jersey, New York, Pennsylvania, Delaware and Florida. He has lectured on the topic of business valuation on behalf of the National Center for Employee Ownership and before estate planning groups. Mark is a designated Accredited Senior Appraiser, with specialty designations in Appraisal Review and Management and Intangible Assets. He has been an active member of the American Society of Appraisers for more than 33 years, and has served in numerous voluntary leadership positions including most notably as International President, Philadelphia Chapter President, Chair of the Ethics Committee and Vice Chair of the Appraisal Review & Management Discipline Committee.

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The difference maker – top five reasons why you must attend the 2020 ASA International Conference!

The American Society of Appraisers’ 2020 ASA International Conference will be held October 11-13 at the Marriott Magnificent Mile in Chicago, IL.

• ASA ARM/GJ/PP/MTS/RP members will have the opportunity to attend the conference at $650 if registered by May 1, which is more than a 40% savings off the onsite price.

• ASA BV members will have the opportunity to attend the conference at $1,000 if registered by May 1, which is a $200 savings off the onsite price. Additionally, BV attendees will benefit from a new premium conference level, including full conference experience, expanded number of dedicated session tracks and post-event access to BV session recordings for onDemand viewing.

Leading appraisers from all disciplines will join fellow practitioners from around the world to explore and discuss the foremost trends and issues impacting their specialty and overall profession, putting into practice this year’s theme of “Convergence of the Appraisal Disciplines”.

Here’s a brief look at the top five reasons why appraisers, allied professionals and others must attend:

1. Best-in-Class Education – The event will spotlight breaking trends and issues impacting the appraisal profession by featuring over 70 educational sessions with presentations from recognized experts.
2. VIP Networking – Valuable networking opportunities will be available, not only during program breaks, but also during planned events designed to foster relationship-building. With over 600+ attendees, many of whom are VIP leaders in the global valuation profession, this is an excellent way to expand your centers of influence and propel your referral source potential forward.
3. Exhibits from Leading-Edge Companies – Be sure to take time to visit our exhibit area to expand your knowledge base on the latest products and services designed to support and enhance your services.
4. Multidisciplinary Programming – Understanding the drivers behind a variety of specialties and asset classes is critical in today’s ever-changing and inter-connected profession. As the oldest professional organization serving all appraisal specialties, no one understands this better than ASA. In addition to standalone sessions from each discipline, the event will also offer a one-of-a-kind dedicated track covering important topics all appraisers need to know.
5. Fantastic & Convenient Venue – Chicago provides the perfect location for this year’s event. Convenient and affordable by air and other travel options, getting to the event and back to clients is easily.

Make plans today to attend this 83 year annual tradition and discover for yourself why this event is one of the prestigious, globally recognized and longest consecutive running appraisal conferences.

To register or for more information, visit https://www.appraisers.org/ASAIC20 or call (800) 272-8258.

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Johnnie White, CEO: February 2020 Travels

This past February I had the opportunity to travel to Tucson and a number of cities in Florida to talk and interact with gems & jewelry professionals, equipment managers and event venue representatives.

The month started off with visits to Tucson, AZ for the Accredited Gemologists Association (AGA) 2020 Conference and the American Gem Trade Association (AGTA) 2020 GemFair events. ASA had a strong presence at both events as a sponsor and exhibitor. The Society also debuted its new Ally membership program to attendees and its new Fundamentals of Jewelry Appraisal course to a group of students seeking to learn how to appraise jewelry. It was truly an eye-opening experience to meet with so many prospective members and experience one of the greatest marketplaces in the world.

I then headed south to the sunshine state and visited a number of cities in Florida to meet with event venue representatives to conduct site visits for potential future ASA International Conference locations to help determine potential best fits for our members and attendees.

While in Florida, I also meet with equipment managers and other allied professionals attending the Equipment Leasing and Finance Association’s (ELFA) 2020 Equipment Management Conference & Exhibition in Orlando. Several ASA-MTS members were on hand to assist in networking and promoting the Society to attendees. While attending this event, I also had the opportunity to meet with ELFA’s CEO and discuss future collaborative opportunities.

Lastly, in between travels, myself and other staff had to opportunity to host two special VIP guests at ASA headquarters, Mr. John Barton, ASA, from Lyndell, PA and Mr. Mohammed Al Maa from Saudi Arabia.

To read more about my travels and other important news visit my Message from the CEO column on ASA’s Blog, or follow me on Twitter @johnniewhiteCEO and LinkedIn: www.linkedin.com/in/johnnniewhiteceo for more ASA updates.

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Q&A with editors of ASA’s new authoritative textbook on the theory and methodology of appraising machinery, equipment, and technical assets.

Editor’s Note: ASA’s Machinery & Technical Specialties Committee recently announced the publication of its new edition of Valuing Machinery and Equipment: The Fundamentals of Appraising Machinery and Technical Assets. Last updated in 2011, the new 2020 edition contains many new and revised chapters, and other beneficial updates. To learn more, we sat down with the publication’s editors, Jamie Allen, ASA, and Garrett Schwartz, ASA.

Q: Congratulations on releasing your updated publication. Tell us more about it and who’s it for.

Jamie: Now in its fourth edition, ASA’s Valuing Machinery and Equipment book has grown to become the authoritative source on the theory and methodology of appraising machinery, equipment, and technical assets. This is largely due to the many dedicated member subject matter experts who participated in this ongoing development effort. Appraisers, equipment management and finance professionals, regular users of appraisals–including attorneys and accountants–and others will all benefit from this comprehensive source of information critical to the valuation of assets within this specialty.

Q: What’s new for this edition?

Garrett: The 2020 edition includes updated and revised chapters on topics such as the sales comparison approach, appraisal report writing, and valuations for financial reporting. ASA’s subject matter experts have completely rewritten chapters like the one on aircraft appraisals, and have written a new chapter on ad valorem tax appraisals. We had a professional indexer create a new index for the book from scratch, making it much easier to look up information by topic, and we completely rewrote the glossary of terms. We also went through and updated most of the appendices, including pages with sources for equipment pricing and general equipment information.

Q: What topics does the publication address?

Jamie: The book includes chapters on topics covering:

• Classification and Description of Machinery and Equipment
• Cost Approach
• Sales Comparison Approach
• Income Approach
• The Three Approaches to Value for a Process Plant
• Appraising Assets in Groups
• Report Writing
• Valuations for Financial Reporting Purposes
• Ethics
• Leasing
• Inventory
• Marine Assets
• Aircraft
• Use of Technology
• Technical Specialties
• Cost Segregation Studies
• International Machinery and Equipment Valuations
• Ad Valorem Tax: Personal Property

As well as bonus, expanded content in appendices covering:

• Accounting Depreciation
• Compound Interest
• Financial Tables
• Quick Reference Tables and Conversion Factors
• Useful Information: Measurements and Estimation
• Licensing of MTS Appraisers
• Pricing and Equipment Data Sources
• Sources of Information and Recommended Readings
• Valuation Process for Financial Reporting

Q: What formats is the new publication available in?

Garrett: The Fourth Edition is available as an electronic PDF file, or as a combo set, which includes a professionally-printed hardbound edition and the electronic PDF. The PDF is available today for immediate download. The hardbound printed edition is in production and ordered copies are expected to be delivered after March 2020.

Q: What is the retail price for the book and where can it be purchased?

Jamie: The retail price for the combo set is $175 members and $195 non-members, while the standalone PDF is $120 members and $140 non-members. Both formats can be purchased online at https://www.appraisers.org/marketplace or by calling (800) 272-8258.

About the Editors

Jamie Allen, ASA, CMI, joined Newmark Knight Frank Valuation & Advisory in 2018 as an Executive Vice President in Valuations and Advisory and the Specialty Practice Leader of the Machinery and Equipment Valuations Group. Based in the Chicago office, Mrs. Allen is responsible for oversight of the group, which focuses on meeting the consulting and valuation needs of her clients as prescribed by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB), as well as, tax compliance and reporting, insurance requirements, loan collateral support, liquidation analysis, internal planning, and fixed asset inventories and management. Jamie has been an ASA member for 12 years, serves on the Society’s Machinery & Technical Specialties Discipline Committee as Secretary and was the inaugural winner of ASA’s new Woman Appraiser of year award in 2019.

Garrett Schwartz, ASA, CEA, is an equipment appraiser with Sencer Appraisal Associates. Based in Northern California, Garrett has performed appraisals for clients across the United States, Mexico, Asia, and Europe. His clients have included the United States Department of Justice, the Federal Deposit Insurance Corporation (FDIC), the United States military, local and regional banks, charitable organizations, business brokers, legal and accounting firms, private individuals, and business clients from single-proprietorships to Fortune 5 corporations. Garrett has been an ASA member for 11 years, serves on the ASA Board of Governors as a Region Governor covering the Western United States, Australia, and the Asian Pacific Rim. He has also held numerous other past member volunteer leadership positions, including most notably ASA NorCal Chapter President.

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The American Society of Appraisers’ Houston Chapter will host its 2020 Energy Valuation Conference on Wednesday, May 13, 2020 online.

BVResources.com will convert all “in person” tickets to “online” tickets at no extra cost to attendee. All “in person” tickets previously purchased will be converted to “online” tickets by BVR.

Event Chair Carol Akers Klug, Location Chair Paula Lindsey, Sponsor Chair Laurie-Leigh White, Speaker Chair Alan Harp, and IT Chair Michael Morgan provided an overview:

Can you provide Learning Objectives, Presenters and Topics of the 2020 Energy Valuation Conference?

Houston Chapter’s Energy Valuation Conference is designed to bring together prominent energy valuation
professionals along with exceptional networking opportunities. Featured speakers are remarkable leaders
in the energy industry from all corners of USA demonstrating a variety of perspectives in BV & MTS:

1. Jeff Gustavson of Chevron speaking on acquisition & divestment activity in the Permian Basin;
2. Alex Lidbeck of Chemical Data on Extensive Chemical Investments. Increased Exposure to the International Market;
3. Art Berman of Energy Specialist & Consultant on Oil & Gas Property Valuation;
4. Dr. Rachel A. Meidl of Baker Institute on Energy, UpStream, Renewables & Environmental Policy;
5. Robert Teigman of Houlihan Lokey on Midstream Market Conditions / Update;
6. Cameron Alguire of Tudor Pickering Holt on Investment Banking – Global Energy & Power;
7. Adrian Galis & Steve Sprenger of RSM on Energy Storage/Distributed Generation, MTS;
8. John Fossum of Petrie Partners on Current State of the Upstream Market.

What makes energy valuation so important to appraisers?

This very dynamic and cyclical industry affects all cities across the world from Denver to Houston to South America. Even if your client isn’t an energy company, energy can still play a vital role in its performance.

What did attendees take away from 2019 EVC? Diversified attendees made perfect networking.

The 143 attendees (25% from out of state) gained a better understanding of the current economic and geopolitical conditions of the industry, and found solutions to challenges faced in energy valuations. EVC is a very holistic and well-rounded conference that attendees enjoy and learn from – not just appraisers. 2019 attendees included: 35% CPAs, 25% ASA.BVs, 20% ASA.M&E, 15% CFAs, 10% Engineers/Industry executives.

When is 2020 EVC? Where can you register?

Register on the ASA Houston Chapter website: https://houstonappraisers.org/energy-valuation-conference-evc/ to attend or sponsor the May 13, 2020 Energy Valuation Conference. For more information, also visit:https://www.bvresources.com/events/asa-energy-valuation-conference

• Early bird until March 31 and (after April 1) fees are:
  • $250 ($300) for members; $275 ($350) for non-members; $225 ($275)/p for 4 or more from same firm.
• Substitution of registrants is allowed thru April 30, 2020.
• EVC 2020 will offer up to 8 hours of CPE for CPAs, and/or CE credits.
• No prerequisites or advanced preparation required.
• Non-refundable after March 31, 2020 and the last day to register is Sunday, May 10, 2020.
• Included: Buffet breakfast, mid-day snacks, lunch & a Texas-style appetizer & cocktail networking afterward.

Come on Down & Network with Energy!

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The American Society of Appraisers’ Houston Chapter will host its 2020 Energy Valuation Conference on Wednesday, May 13, 2020 at the Federal Reserve Bank in Houston, Texas. Event Chair Carol Akers Klug, Location Chair Paula Lindsey, Sponsor Chair Laurie-Leigh White, Speaker Chair Alan Harp, and IT Chair Michael Morgan provided an overview:

Q: Can you provide Learning Objectives, Presenters and Topics of the 2020 Energy Valuation Conference?

A: Houston Chapter’s Energy Valuation Conference is designed to bring together prominent energy valuation professionals along with exceptional networking opportunities. Featured speakers are remarkable leaders in the energy industry from all corners of USA demonstrating a variety of perspectives in BV & MTS:

1. Jeff Gustavson of Chevron speaking on Acquisition & Divestment Activity in the Permian Basin;
2. Alex Lidbeck of Chemical Data on Extensive Chemical Investments. Increased Exposure to the International Market;
3. Art Berman of Energy Specialist & Consultant on Oil & Gas Property Valuation – Litigation Support;
4. Dr. Kenneth Medlock of Baker Institute on Geopolitical Energy Outlook;
5. Robert Teigman of Houlihan Lokey on Midstream Market Conditions / Update;
6. Cameron Alguire of Tudor Pickering Holt on Investment Banking – Global Energy & Power;
7. Adrian Galis & Steve Sprenger of RSM on Energy Storage/Distributed Generation, MTS;
8. John Fossum of Petrie Partners on Current State of the Upstream Market.

Q: What makes energy valuation so important to appraisers?

A: This very dynamic and cyclical industry affects all cities across the world from Denver to Houston to South America. Even if your client isn’t an energy company, energy can still play a vital role in its performance.

Q: What did attendees take away from 2019 EVC? Diversified attendees made perfect networking.

A: The 143 attendees (25% from out of state) gained a better understanding of the current economic and geopolitical conditions of the industry, and found solutions to challenges faced in energy valuations. EVC is a very holistic and well-rounded conference that attendees enjoy and learn from – not just appraisers. 2019 attendees included: 35% CPAs, 25% ASA.BVs, 20% ASA.M&E, 15% CFAs, 10% Engineers/Industry executives.

Q: When is 2020 EVC? Where can you register?

A: Register on the ASA Houston Chapter website: https://houstonappraisers.org/energy-valuation-conference-evc/ to attend or sponsor the May 13, 2020 Energy Valuation Conference.

• Early bird until March 31 and (after April 1 fees) are: $250($300) for members; $275($350) for non-members; $225($275)/p for 4 or more from same firm.
• Substitution of registrants is allowed thru April 30, 2020.
• EVC 2020 will offer 8 hours of CPE and/or CE credits.
• No prerequisites or advanced preparation required.
• Non-refundable after March 31, 2020 and the last day to register is Sunday, May 10, 2020.
• Included: Buffet breakfast, mid-day snacks, lunch & a Texas-style appetizer & cocktail networking afterward.

Come on Down and Enjoy the Energy!

Click here to download our event flyer.

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Johnnie White, CEO: January 2020 Travels

This past January I had the opportunity to travel to Philadelphia, Orlando and Las Vegas to interact with local chapter members, leadership, students and prospective members at board meetings, symposiums and educational classes.

This month started off with a visit to the ASA Philadelphia Chapter as speaker for their local event, followed by the opportunity to attend their board meeting. I was excited to meet with chapter members, learn about their initiatives and upcoming events, and was extremely impressed at all the great things they are doing in Philly.

I then joined ASA’s International Vice President, Lorrie Beaumont, ASA, for The ASAE CEO Symposium in Orlando, FL. This 2-day executive training event hosted by the American Society of Association Executives provided advanced insight into defining annual priorities and determining how to work better together. It also explored challenges facing contemporary association leaders and highlighted the value of informed policy and strategy as primary tools of the leadership team. This important event will help ensure our continued strategic movement forward as we transition to adopt a new policy governance model.

Last, I closed out the month by attending ASA’s Principles of Valuation (POV) courses, BV201, BV203 and ME203, in Las Vegas, where I had to opportunity to spend time with over 40 students and instructors, William Quackenbush, ASA; Bruce Johnson, ASA; and Paul R. Cogley Jr., ASA. Students gained valuable insight into business and machinery & technical specialties valuation, and also received a personal spotlight into the many benefits and competitive advantages of becoming a credentialed member of the American Society of Appraisers.

To read more about my travels and other important news visit my Message from the CEO column on ASA’s Blog, or follow me on Twitter @johnniewhiteCEO and LinkedIn: www.linkedin.com/in/johnnniewhiteceo for more ASA updates.

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Special spotlight on two upcoming local chapter events hosted by ASA’s Houston and Greater Miami chapters.

The Houston Chapter of the American Society of Appraisers will host a one day workshop for litigation support professionals on Thursday, April 16, 2020, prior to the two day Forensic Expert Witness Association (FEWA) National Conference on Friday, April 17 and Saturday, April 18, 2020. Both events will be hosted on the campus of South Texas College of Law in Houston, TX, conveniently located within walking distance to hotels and restaurants.

Expert Witness Workshop & Mock Trial
Thursday, April 16, 2020
The Expert Witness Workshop & Mock Trial has been tailored for professionals who do litigation support or have an interest in future expert witness work, will feature topics presented by attorneys, judges and leading experts during the morning program, followed by a mock trial in the afternoon. Early registration is $250 and $350 after March 31, 2020. Fee includes lunch and happy hour. Registration and complete event details, including sponsorship opportunities, are available online.

FEWA National Conference
Friday, April 17 and Saturday, April 18, 2020
The 2020 FEWA National Conference has been tailored for seasoned experts and beginners, will feature topics presented by a faculty of 18 outstanding speakers, including Chief Justice Nathan Hecht and keynote speaker Benny Agosto Jr., a personal injury trial lawyer in Houston and author of over 30 published works on law topics. Early registration is $1,025 and $1,075 after March 1, 2020. Registration and complete event details are available online.

The Greater Miami Chapter of the American Society of Appraisers will host a one day course for professionals on Wednesday, February 26, 2020 at the MBAF offices in Miami, FL.

The Business Appraiser as Expert Witness
Wednesday, February 26, 2020
The Business Appraiser as Expert Witness course is for professionals interested in real world examples of court testimony victories, failures, and most importantly, tips on the do’s & don’ts of expert testimony by the business appraiser. Course will be presented by Richard Wise, FASA, an expert who has testified in over 200 trials as a business appraiser and/or damages expert. Early registration is $20 for members and $25 for non-members and $25 for members and $30 for non-members after February 20, 2020. Registration and complete event details is available online.

Make plans to attend these leading events and benefit by expanding your knowledge base; growing your network of attorneys, judges, academics/thought leaders and fellow practitioners; and positioning your career or practice for advancement.

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The American Society of Appraisers local Denver chapter hosted a member tour of the Kirkland Museum of Fine & Decorative Art on January 15, 2020. Deputy Curator Christopher Herron led the tour of the museum’s collections, which include the work of Vance Kirkland, regional fine and decorative art and a collection of international decorative art. The museum opened in 2018 in a state-of-the-art building designed by Seattle architect Jim Olson.