From the Chair

Abstract

On September 10, 2022, in Tampa, Florida, the Business Valuation Committee convened during the 85th International Appraisers Conference. We thank our business valuation conference planning committee members, cochairs Laurie-Leigh White, ASA, and Ken Pia, ASA, and Todd Larson, ASA, Jeff Tarbell, ASA, and Ronald Seigneur, ASA. The conference was well attended and held both in person and via video formats. It was great to come back together again and see so many familiar faces and make new acquaintances. Conference speakers included Roger Grabowski, FASA, Ron Seigneur, ASA, Chris Rosenthal, ASA, Chris Mercer, FASA, Michael Gregory, ASA, and Jay Fishman, FASA. Additionally, Roger received ASA's new Shannon Pratt Award, which recognizes business valuation members with notable contributions to the appraisal community. Make sure you save the date for the next International Appraisers Conference to be held in New Orleans, October 1 to 3, 2023.The BVC welcomed new committee members Dan Daitchman, ASA, and Brian Crotty, ASA. Dan hails from Chicago and is a managing director at B. Riley Advisory Services. Brian is a director at HDH Advisors, LLC, in Des Moines.At our BV Committee meeting, we discussed appraisal standards, ESG-IA, and education, among other topics. Richard Wise, ASA, standards committee chair, stated the 2021 USPAP will be in effect until December 31, 2022, and the subcommittee will be looking into standards as they relate to ligation assignments and possible conflicts, particularly at the federal level. Also appraisal standards, in general, are being considered in light of the impact of ESG (environmental, social, and governance) factors and the valuation of an enterprise.Adam Smith, ASA, is looking to put together an ESG-IA subcommittee. He participates in an international working group that examines financial standards as they relate to ESG-IA, board of directors, regulators, and stakeholders. The ESG-IA working group references standards of the European Financial Reporting Advisory Group (EFRAG), the Task Force on Climate-Related Financial Disclosures (TCFD), the International Sustainability Standards Board (ISSB), and the Global Reporting Initiative (GRI). The international ESG-IA working group is collaborating on a white paper that will discuss the metrics and quantitative disclosures that can impact enterprise value.In education subcommittee news, Bill Johnston, ASA, discussed new upcoming one-day courses that are being planned and our first ever ESOP Virtual Conference held June 21. The conference was well attended with timely topics, including discussion of the landmark Bowers case, the increase in class action lawsuits by private plaintiffs, and the do-away of control premiums by trustees. Liza Bowersox, our webinars education chair, discussed increasing the number of one-hour webinars to add to our collection of two-hour webinars and to suggest that conference speakers also do an extension of their topic into a webinar.Since releasing the sixth edition of Valuing a Business (VAB6), the ASA has made the text available online in electronic format. Additionally, our POV education courses are being revised to coincide with the layout of VAB6, which is now overseen by the ASA as Dr. Shannon Pratt's legacy to the business valuation community. We are already in talks to update the sixth edition, possibly as early as 2023, as well as work on another text originally authored by Dr. Pratt.The BVC will now have meetings quarterly, all being via teleconference with the one in-person meeting taking place at the annual conference. You are welcome to guest at any of these meetings, and I also highly encourage you to volunteer for subcommittees or even seek a position as a BVC member. Ultimately, the ASA needs our members to support its sustainability and future.