american appraisal overview valuation / transaction consulting / real estate advisory / fixed asset...
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American Appraisal Overview
Valuation /Transaction Consulting /Real Estate Advisory /Fixed Asset Management
Leading / Thinking / Performing
American Appraisal Overview 2
Contents of Presentation:
Overview of American Appraisal Associates 3
List of All Available Valuation Services 4
Credentials 5
List of Global Offices 6
Notable Valuations 7
Independence and Objectivity 8
Quality Control and Assurance 9
Sample Audit Review Experience by Firm 11
The Value of a Relationship 12
The Engagement Process 13
Contact Information 14
American Appraisal Overview 3
Overview of American Appraisal Established in 1896, employee owned
Largest, most experienced valuation-consulting firm in the world
The only global, “independent” valuation firm in the world
Our total independence from auditors, tax consultants and rating agencies provides clarity for governance boards
850 employees globally
Serving companies of all sizes, including 85% of the Fortune 500 over the last ten years
Full service, multi-industry, valuation consulting firm - Valuation-consulting is our only business
Responsive to our client’s needs - 99% client satisfaction rating. Our reputation is one of quality, independence and service - we can be relied upon
No client has been requested to restate financial statements as a result of SEC objections to a valuation performed by American Appraisal.
American Appraisal Overview 4
All Valuation Disciplines Under One Roof - Globally
Mergers, Acquisitions FAS141R/142, IFRS 3
Due Diligence
Business Enterprise Valuations
Fair Value-Options 123R / 409A
Intangible Assets
Impairment Testing 142/144
Solvency Opinions
Fairness Opinions
Divestitures / IPO’s
ESOPS, Profit Sharing Plans
Bankruptcy – Fresh Start
Tax Reorganization Valuations
Section 1.861 FMV Studies
Ad Valorem Tax Challenges
Litigation Support
Real Estate Valuations
Real Estate Advisory Services
RE Appraisal Management Services
Cost Segregation Studies 1245/1250
Property Records – Sarbox 404
Estate & Gift Tax Valuations
Privatization
Structured Finance
Common, Preferred Stock
Worthless, Restricted Stock
Sub S to C & visa versa
Joint Ventures
Insurance Appraisals
Valuations for Insurance Pooling
Lifing Studies
M & E Valuations
FMV Lease End Valuations
Export Certification
Valuations for Collateral Financing
Financial - Real Estate - Industrial
American Appraisal Overview 5
CredentialsAppraisal Issues Task Force - Gerald Mehm, SVP and Managing Principal, is presently chairperson of the Appraisal Issues Task Force. This entity was initially empanelled, at the suggestion of the SEC, to provide guidance relating to SFAS 141, SFAS 142, SFAS 144, SFAS 123, etc.
Appraisal Standard Board - Carla Glass, Vice President and Principal has recently completed her chairmanship of the Appraisal Standards Board ("ASB"), the sole source of appraisal standards and appraiser qualifications.
International Valuation Standards Committee – Nick Anderson, a managing director in our London practice, is a specialist in IFRS 3 and sits on the IVSC, leading the debate on the subject.
American Appraisal Overview 6
One Company Globally On Three Continents
North & South America Eurasia
Canada:Montreal, Toronto, Vancouver
Czech Republic: Prague
France: Paris
Germany: Frankfurt
Greece: Athens
Hungary: Budapest
Italy: Milan, Padova, Pesaro, Rome, Turin
Japan: Tokyo
Republic of China: Beijing, Guangzhou, Hong Kong, Shanghai, Shenzhen
Portugal: Lisbon
Russia: Moscow, St. Petersburg
Spain: Barcelona, Bilbao, Madrid, Palma de Mallorca
Thailand: Bangkok
United Kingdom: London
United States: Atlanta, Chicago, Cornelius, Dallas, Detroit, Houston, Lisle, Los Angeles, Milwaukee, New Orleans, New York, Philadelphia, Pittsburgh, Princeton, San Francisco, Stamford, Washington D.C., Wrightstown
Venezuela:Caracas (Affiliate)
American Appraisal Overview 7
Notable Valuations Performed
MCIAmerican Appraisal provided the Fresh Start Accounting needed for MCI to emerge from Ch 11 bankruptcy, the largest bankruptcy in US history. This valuation required all their assets to be valued or “stepped down” to their new values in much the same way an acquisition often requires a “stepping up” of the assets. MCI’s circumstances also required us to re-value their previous acquisitions going back 10 years – One of the most visible valuations ever! This involved all three valuation disciplines – Financial, Real Estate and Industrial.
Twin Towers How do you value something after it’s gone (post-loss)? American Appraisal was engaged to provide retrospective values for Larry Silverstein’s court case. 16 American Appraisal Engineers were involved to complete the engagement.
The Experience of our Professionals is reflected in every engagement, large or small
American Appraisal Overview 8
Independence and Objectivity
Our total independence from auditors, tax consultants and rating agencies provides the clarity that governance boards are seeking.
American Appraisal is not an affiliate of any certified public accounting firm, management consulting firm, engineering design firm, or financial services organization.
This policy is designed to protect the valuation from current and prospective scrutiny, ensuring that a durable valuation and related opinion is achieved.
American Appraisal Overview 9
Quality Control And AssuranceQuality influences every client relationship.
American Appraisal, from its early beginnings, developed, implemented, reviewed, and updated its quality control program.
American Appraisal developed and implemented a Quality Assurance Program consisting of a Procedural Review and a Judgmental Review.
The Procedural Review measures how closely employees who arrange, plan, perform or review work, follow practice policies, standards, procedures, and other systematic processes.
The Judgmental Review is an in-depth examination of the work performed by members of the Client Service Team to gauge the quality of the assessments made in arranging, planning, performing and reviewing appraisal services.
American Appraisal Overview 10
Quality Control And Assurance (continued)
In addition to its internal monitoring and measurement processes, American Appraisal seeks continuous input on the quality of its services from its clients.
A Client Satisfaction Survey is enclosed with every final report, under our Chairman and CEO’s signature
Our Client Satisfaction Survey creates a platform where comments on every engagement are directly reported to our CEO and management team.
Finally, American Appraisal links quality directly with compensation. The incentive compensation awards of the members of American Appraisal's senior management and those who report to them is tied both to compliance with its Internal Guidance System and to achieving a minimum of 98% in meeting/exceeding client expectations, in the aggregate during the year.
American Appraisal Overview 11
Sample Audit Review Experience by Firm
Ernst & Young Deloitte & Touche KPMG PriceWaterhouseCoopers
Arthur J. Gallagher BRK BrandsConocoPhillipsCoram, Inc.Dave & Buster’sFirst Data
CorporationHospitality
PropertiesTrustMagna InternationalRondelle Specialty
Foods Vivendi Universal
SAWeatherford
International
AgcoFedders
CorporationFormica
CorporationGenTecMarietta
CorporationNorwood
PromotionsRockwood
Chemicals Company
Sanmina-PentaxThe Newark GroupUPS
BAE Systems, Inc.Chiquita BrandsC&S WholesalersDiamond
Generating Corporation
EchoStar EDSHanover DirectHome DepotMohawk PaperQwestTechnitrol
Corporation
Anheuser Busch Companies
Brilliance ChinaChinadot.comDigicell GroupHealthSouthHexion Specialty
ChemicalsLyondell ChemicalsMasco CorporationON SemiconductorPCCWPQ CorporationSunGard Data
Systems, Inc.
American Appraisal Overview 12
The Value of a Relationship
“It’s the caliber of your staff and
the tested principles they employ
on each assignment that make
your company so valuable.”
- Client Satisfaction Survey Respondent
American Appraisal Overview 13
The Engagement Process
A conference call or meeting with all involved disciplines takes place where the scope of the project is determined.
A formal proposal / engagement letter is prepared.
Your authorization to proceed triggers a specific data request.
Formal conferences / meetings take place for intangibles - property inspections take place for real property and based on scope, site visits might be required for personal property.
The client’s timetable is very important and will be discussed at the outset. There are no standard engagements and the needs of each client will be met.
Conclusions delivered in a written report in hardcopy, electronic or both as agreed to in the engagement letter.
American Appraisal Overview 14
Contact Information
Sandra L. Sours
Vice President – Managing Partner
American Appraisal Associates
2802 Johnson Circle
Bridgewater, NJ 08807
Tel 215 504 0203
Mobile 215 410 8162
Fax 908 541 9316