PAGE 8 Conference Presentations, Webinars, and Professional Journal Articles:

“The Use and Misuse of Transaction Data in Valuations Prepared for Property Tax Purposes”
By Aaron M. Rotkowski, Richard G. Smith, and John C. Ramirez, published in Volume 9, Issue 2, 2012, of the Journal of Property Tax Assessment & Administration, a publication of the International Association of Assessing Officer (IAAO).
The article (1) addresses whether the purchase price represents the fair market value of an acquired business enterprise and (2) summarizes the valuation differences between the estimation of fair value of a taxpayer company’s taxable unit for purchase accounting purposes and the estimation of its fair market value for property tax purposes. Property tax assessors can consider the issues addressed in this article to determine how relevant transaction data are to the fair market value of a taxpayer company’s taxable unit.


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“What Lawyers Need to Know about the Employee Purchase of the Employer Company” (Part 2)
By Robert Reilly, published in the April 2012 issue of The Practical Lawyer. The Practical Lawyer is published by ALI-ABA.
The first part of this article summarized the generally accepted business/stock valuation approaches with regard to the target employer company. This part discussed how the purchase of employer stock may be financed, various purchase transaction scenarios, factors that affect different valuation considerations, transaction structure considerations, employer company transaction structuring issues, economic interests of the buyers and the sellers, transaction substance, and transaction form.


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America Invents Act and Intellectual Property Valuation
This webinar, sponsored by West Legal Education, was presented on April 17, 2012, by Robert Reilly.
The webinar provided an overview of the Leahy-Smith America Invents Act (AIA) and discussed its impact on patent litigation and valuation. Robert then discussed the various patent valuation practices and procedures. Finally, Robert presented an overview of reporting a patent valuation and defending a patent valuation in court.


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“The Property Tax Implications of Lease Accounting GAAP Changes”
By John Ramirez, published in the February 2012 issue of the Journal of Multistate Taxation and Incentives. This article appears in, and is reproduced with the permission of, the Journal of Multistate Taxation and Incentives, Vol. 21, No. 10, February 2012. Copyright (c) 2012 Thomson Reuters/WG&L. All rights reserved.
Under current U.S. generally accepted accounting principles, the assets and the liabilities of operating leases are not recorded on the balance sheet. The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are proposing significant changes to the current lease accounting standards. As a result, virtually all leases, including operating leases, will be reported on a lessee taxpayer’s balance sheet. These proposed changes may have a significant impact on the property tax valuations of many industrial and commercial taxpayers, particularly capital-intensive taxpayers that lease much of their real and personal property.


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“Defining the Intangible Asset Valuation Assignment”
By Robert Reilly, published in the Journal of Property Tax Assessment and Administration, Volume 8, Number 4, 2011, a publication of the International Association of Assessing Officers (IAAO).
This article summarizes the following procedures related to defining the intangible asset valuation assignment: defining the purpose and the objective of the intangible asset valuation, selecting the appropriate standard of value, selecting the appropriate premise of value, describing the subject intangible asset, describing the subject bundle of legal rights, selecting the appropriate valuation date, and defining the valuation assignment in a client engagement letter. The article focuses on these valuation assignment procedures from the perspective of a property tax valuation engagement.


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“Valuation of the Debtor Company Intellectual Property”
By Bob Schweihs, published in the Journal of Business Valuation, 2011 Volume 2, a publication of The Canadian Institute of Chartered Business Valuators.
This article discusses the importance of defining the objectives and requirements of the valuation assignment. Topics covered include the purpose of the valuation in a bankruptcy environment, data gathering and due diligence, generally accepted valuation approaches and methods, and attributes of an effective intellectual property valuation report.


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"What Lawyers Need to Know About The Employee Purchase Of The Employer Company" (Part 1)
By Robert Reilly, published in the February 2012 issue of The Practical Lawyer, a publication of American Law Institute-American Bar Association (ALI-ABA).
This article is part one of a two-part article series. This first article in the series focuses on the pricing (i.e., valuation) aspects of the employee (or other insider) offer to purchase the closely held employer corporation. The second article in the series will focus on the structuring and financing aspects of the employee acquisition transaction.


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"Defining the Intangible Asset Valuation"
By Robert Reilly, published in the December 2011 issue of the ABI Journal, a publication of The American Bankruptcy Institute.
Robert's article discusses the various aspects of defining the assignment of valuing intangible assets for bankruptcy purposes. The aspects of the assignment that should be defined include (1) the objective of the analysis, (2) the purpose of the analysis, (3) the standard of value, (4) the premise of value, (5) the highest and best use, (6) the bundle of legal rights to be appraised, and (7) the valuation date.


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"Fraudulent Transfers and the Balance Sheet Test"
By Robert Reilly, published in the February 2012 issue of the ABI Journal, a publication of The American Bankruptcy Institute.
This article summarizes the generally accepted procedures related to the preparation of a debtor corporation solvency opinion within the context of a bankruptcy-related fraudulent transfer claim.


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“Valuation of Intellectual Property—Part VII”
By Robert F. Reilly, published in the January 2012 issue of Business Valuation Alert. This article is reprinted with the publisher’s permission from Business Valuation Alert, a monthly newsletter on business valuation planning published by CCH, INCORPORATED a Wolters Kluwer business. Copying or distribution without the publisher’s permission is prohibited. To subscribe to Business Valuation Alert or other CCH journals or newsletters, please call 800-449-8114 or visit www.tax.cchgroup.com.
This article is the seventh in a 10-part series related to the valuation of commercial intellectual property. This article describes and illustrates the income approach valuation methods.


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Forensic Analysis Expert Witness Testimony: Defending Your Expert Report and Expert Testimony
This AICPA webinar was presented on February 2, 2012, by Robert Reilly.
Providing expert testimony in court can be a challenging and rewarding experience for analysts who are qualified and properly prepared. Robert discussed various types of forensic analysis engagements, steps in a forensic analysis assignment, and common mistakes to avoid.


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“What Lawyers Need to Know about the Employee Purchase of the Employer Company” (Part 1)
By Robert Reilly, published in the February 2012 issue of The Practical Lawyer. The Practical Lawyer is published by ALI-ABA.
This article summarizes the generally accepted business/stock valuation approaches with regard to the target employer company. It considers the effect on value of various factors such as levels of value, security-specific stock rights and privileges, and financing of the company purchase. The second part of this article will appear in the April 2012 issue of The Practical Lawyer.


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“A Valuation Practitioner’s Perspective of the Discount for Lack of Marketability Job Aid for IRS Valuation Professionals”
By Kevin Zanni, published in the January 2012 issue of Business Valuation Alert. This article is reprinted with the publisher’s permission from Business Valuation Alert, a monthly newsletter on business valuation planning published by CCH, INCORPORATED a Wolters Kluwer business. Copying or distribution without the publisher’s permission is prohibited. To subscribe to Business Valuation Alert or other CCH journals or newsletters, please call 800-449- 8114 or visit www.tax.cchgroup.com.
This article provides a summary of the recent IRS Job Aid. Kevin provides an interpretation of certain of the Job Aid positions. He also discusses the general reaction from the valuation profession with respect to this Job Aid.


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“Sale of Private Company Stock to Employees and Other Parties”
By Robert F. Reilly, published in the January 2012 issue of The CPA Journal. The CPA Journal is published monthly by The New York Society of Certified Public Accountants.
This article describes the procedures that the CPA valuation analyst typically uses to value a closely held business or the stock of a closely held business. In addition, the article discusses how the CPA valuation analyst could assist the closely held business owner in structuring the sale of the business enterprise.


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Professional Practice Goodwill/Celebrity Goodwill
This presentation was delivered to the 2012 Arizona Family Law Institute in Scottsdale, Arizona, January 20, 2012, by Charles Wilhoite.
Charles discussed the definition of intangible assets in general versus the definition of goodwill. He presented an example of the valuation of goodwill in a professional practice. Charles then discussed the concept of “celebrity goodwill,” and he summarized generally accepted valuation methods for valuing celebrity goodwill


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“The Relevance of Fair Value Measurements for Property Tax Purposes,”
by Aaron Rotkowski, Richard Smith, and John Ramirez, published in the January 2012 issue of Journal of Multistate Taxation and Incentives, a Thomson Reuters publication. This article appears in, and is reproduced with the permission of, the Journal of Multistate Taxation and Incentives, Vol. 21, No. 9, January 2012. Copyright 2012, Thomson Reuters/W6&L. All rights reserved.
Taxpayers should not accept on faith alone the taxing authority’s claim that fair value equals fair market value. This article explains when fair value analyses are and are not relevant to a fair market value valuation.


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Willamette Management Associates White Paper:
Intellectual Property Valuation Considerations
by Robert F. Reilly, CPA
There are numerous reasons why Willamette Management Associates analysts are asked to value an owner/operator's intellectual property assets. First, this white paper summarizes the valuation implications of the 2011 America Invents Act. Second, this white paper summarizes (1) many of the reasons to conduct the intellectual property valuation, (2) the elements of the intellectual property valuation assignment, and (3) the data gathering and due diligence process. Third, this white paper describes and illustrates the three generally accepted intellectual property valuation approaches, specifically: cost approach valuation methods, market approach valuation methods, and income approach valuation methods. Finally, this white paper comments on (1) the valuation synthesis and conclusion process, (2) the attributes of an effective intellectual property valuation report, and (3) what type of professional should perform the intellectual property valuation.


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"Construction Company Economic Damages Measurements"
Robert F. Reilly, managing director Chicago office, authored this article that was published in the November/December 2011 issue of Construction Accounting and Taxation.
This article describes the types of breach of contract and tort damages that a construction company may experience in the normal course of business. And, this article focuses on the generally accepted methods and procedures for estimating the related lost profits and other economic damages measurements. Robert is also proud to start a new year on the board of advisers and contributors for Construction Accounting and Taxation.


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