The beautiful and historic city of Dubrovnik provided the backdrop for an eventful TEGoVA European Valuation Conference and General Assembly hosted by the Croatian Association of Court Expert Witnesses and Valuers (HDSVIP). The General Assembly was attended by 90 delegates representing 45 valuer associations from 24 of the 37 member countries. Additional attendees included 12 board members of the International Institute of Business Valuation (iiBV), including the current and incoming Chairs of the iiBV Board of Directors, Edwina Tam and Anton Lezhja respectively. 

Also speaking and participating was the Secretary General of the International Association of Certified Valuation Specialists (IACVS), Bob Brackett from the USA.

After numerous board meetings of the many attending associations on Wednesday (16 May) TEGoVA hosted a full day of valuation training (titled The Role of the Expert Witness in the Valuation of Real Estate and Businesses) taught by individuals from the many attending associations. 

On Saturday (18 May) the General Assembly met and deliberated on a number of current valuation issues including an easier to translate definition of market value, a new definition of highest and best use/hope value, insurable value, the use of automated valuation models and data protection (GDPR). One of the most noteable presentations was the topic of implementing the current EU requirements on data security (GDPR) that has had unanticipated impacts on the valuation (business and tangible asset) community. A number of other presentations were delivered:

1. Bernhard Bischoff (BVS) - GDPR Guidelines for valuers
2. Michael MacBrien (TEGoVA Adviser) - Valuation Provisions of Covered Bonds Directive and Mortgage Credit Directive
3. Ben Bervoets (NCREA) - Dutch Regulation/Guidelines for Use of AVM Based Valuations for Mortgage Loan Initiations
4. Peter MacLean (President Appraisal Institute of Canada) - Green Valuation - A Canadian Perspective
5. Danijela Ili? (Chair European Business Valuation Standards Committee) - Progress report on European Business Valuation Standards 2020
6. Michael Reinberg (Chairman European Valuation Standards Board) - Progress report on European Valuation Standards 2020
7. Philippe Guillerm (Chairman European Valuation Practice and Methodology Board - Update on Methodology Chapter for EVS 2020
The Autumn Meeting of TEGoVA will be hosted by the Chamber of Independent Appraisers in Bulgaria (CIAB) in Sofia on 10-12 October 2019.
Additional information on speakers and presentations is available on the TEGoVA website https://tegova.org.

We’re pleased to announce the establishment of the Association of Asian Chartered Certified Valuation Specialists – AACVS was established in March 2019. The AACVS is the IACVS Chapter for Singapore and Cambodia.  IACVS is a not-for-profit organization dedicated to the education and excellence of the global business valuation profession.  Chapters and Charters are the local representatives of IACVS and look for ways to strengthen relationships with local CPA Societies, universities, property appraisers and professional associations.  This is to enhance, improve and expand IACVS’s public relations efforts to build ICVS awareness which can include: administering advertising campaigns, identifying contacts that can help build IACVS’s chapter and international prominence. IACVS confers to successful candidates the ICVS – International Certified Valuation Specialist credential.

Both A/Prof. Wilson Lim and A/Prof. Don Prasad are the chapter leaders of AACVS, they have been involved with business valuation for many years and see the need for valuation professionals to be represented in the IACVS global association/network. Professionals from Republic of Singapore and the Kingdom of Cambodia can contact them directly on IACVS and ICVS credential. 

The Business Valuers Association of Malaysia (BVAM) - the IACVS Malaysia Charter has successfully conducted the fifth ICVS Certification Training Class in Malaysia from April 6 to 8, 2019. Forty candidates from Malaysia participated in the course.

Sr Elvin Fernandez, the President of BVAM, taught the business valuation theories and methodologies, and answered many questions from candidates. Ms Jowis Ng has 10 years of corporate finance experience, shared many examples and case studies from an experienced practitioner’s perspective. Dato’ Sr Lau Wai Seang met with candidates and imparted her personal experience and real life cases while teaching the topic on Best Practice for Intangibles valuation class. 

All participants were encouraged to utilize the IACVS world-wide network to develop their practices through participating in local and global events.

On April 20, twenty-eight attendees sit for the ICVS multiple choice paper exam at INSPEN. The exam was proctored by Ms. Lisa Guo from IACVS headquarters and Mr. Sr Mohd Zamri bin Awang from INSPEN.  Another 6 attendees sit for the online -based exam at a university in India, the exam was proctored by Ms. Jowis. She also gave the IACVS member certificate to these India candidates.

BVAM also hosted its annual general meeting on April 19 at hotel Hilton, Petaling Jaya. Mr. William Hanlin recorded a greeting to BVAM's AGM and wish the meeting ended with success. Around 40 participants joined such events.

We are looking forward to the next training which will most likely be in September 2019.

The Role of the Expert Witness in the Valuation of Property and Businesses

Valamar Lacroma Dubrovnik Hotel 

The spring meeting of TEGOVA - European Valuation Conference will be hosted at Valamar Lacroma Dubrovnik Hotel on Friday 17 May 2018. Mr. Bob Brackett, the secretary general of IACVS, will attend and delivery a speech named "The Journey from Real Estate to Business Valuation".  Below is more information about this conference:

Conference Agenda:

Meeting Registration Fees:

The registration fee of € 580,00 includes entry to: 

- the Valuation Conference on 17 May, tea/coffee breaks and lunch 

- the Formal Dinner on 17 May 

- the General Assembly on 18 May, tea/coffee breaks and lunch 

The extra costs for delegate partners’ formal dinner, partners' programme and informal dinner are indicated in the registration form.

Submit your meeting registration at http://www.dubrovniksun.hr/prijave/tegova-registration/. Please register by April 30, 2019 at the latest.

Hotel Reservation:

Submit your hotel registration at http://www.dubrovniksun.hr/prijave/tegova-accommodation/

For more information about the meeting, pleaselview the conference brochure or contact Secretariat: mr. Igor Kaluder dipl.oec., Secretary CACEW  Tel: +385 99 2588 849 E-mail: tajnik@sudski-vjestaci.hr 

The Internatilnal Institute of Business Valuers (iiBV) has realeased four onine courses, which are

*International Cost of Capital - iiBV 210

*Valuing Early Stage Companies - iiBV 211

*Valuing Minority Interests - iiBV 212

*Valuing Intangible Assest - iiBV 213

A single course costs $299 and a four - course package costs $999. Candidates can selects the material at his own discretion, please see more details at https://iibv.org/online-continuing-education

The 8th International Conference on New Development of Appraisal was held in Wuhan On December 8, 2018.  The forum was hosted by the School of Business Administration (MBA Education Center) at Zhongnan University of Economics and Law, Wuhan, Hubei Province, with the supporting of CAS (China Appraisal Society), ASA (American Society of Appraisal), IACVS (International Association of Certified Valuation Specialists), Asset Appraisal Research Center of Xia Men University and the Capital University of Economics and Finance. The theme of the conference is “Appraisal in the Age of AI: Inheritance and Innovation”. More than 120 participants from China, the United States, Russia, Germany, Japan, Singapore and other countries attended the conference.

At the opening ceremony of the forum, Mr. Zou Bingguo, Assistant to the President of Zhongnan University of Economics and Law, reviewed the development of the asset assessment profession in Zhongnan Finance and Economics Law, affirmed the academic research value of the forum and promoted the valuation industry in China.   Mr. Wang Chengjun and Mr. Liu Dengqing delivered the opening speeches respectively.

At the keynote speech reporting session, Dr. Karl Sheeler from the United States, Mr. Alexander Lopatnikov from Russia, Sano Yosuke from Japan, Zhang Guochun, Secretary General of the China Appraisal Society, and Cai Hengjin (Artificial Intelligence Expert) from Wuhan University gave a wonderful speech and pushed the forum into a rigorous academic exchange climax.

Mr. William Hanlin, president of IACVS, delivered a speech entitled “Valuation in the Midst of Valuation”. Mr. Hanlin introduced the definition and extension of artificial intelligence in the world, reviewed the development history and current situation of intelligence to artificial intelligence, and expected the deep development of intelligence may bring challenges to the valuation industry. Besides, Mr. Hanlin pointed out current smart applications such as the AVM - AVM has some impacts on the real estate appraisal projects, but it is difficult to participate in other asset appraisals, risk-based judgments and analysis, and believe it needs time to approve the real artificial intelligence will have influence to the society and industry. Hanlin’s speech was warmly affirmed by the participants, and the opinions of the report were also recognized by the other speakers.

The sub-session of the conference is focus on “The Status and Inheritance of Assets Valuation” and “The Impact of Artificial Intelligence on Asset Valuation”. 14 professors from University, research Center and Valuation Institute gave wonderful speeches on topics such as assessment methods, innovation and internet company valuation, credit valuation, valuation applications for deep learning neural networks, and valuation applications for big data and digital.  In the afternoon's theme report, Mr. Liu Dengqing introduced the impact of changes in the supervision of the capital market. Professor Wang Haisu proposed and introduced the research on the intrinsic value of enterprises.

The discussion session focused on the development of artificial intelligence and asset appraisal industry. 5 professors gave their views from different perspective and put forward some ideas for the development of the industry.

At the end of the conference, the guests presented the award certificate to the author of the excellent conference paper, and the meeting ended with warm applause. 

IACVS congratulated this conference was successfully held in Wuhan. 

World Council of Charter and Chapters

Dubai UAE

October 21, 2018

IACVS held our eleventh World Council Meeting on October 21, 2018, in Dubai, United Arab Emirates.
Delegates attended from many countries, including China, Canada, Middles East, Southeast Africa, Russia, Kazakhstan, South Korea, India and USA.  HQ was represented by Bill Hanlin, Bob Brackett, and Lisa Gao.

The day was filled with much discussion and sharing.  We welcomed the newest Charter Member from Southeast Africa.  This new member is also offering the first accredited Master’s Degree in Business Valuation.  The course is entirely on-line.  In addition to receiving a Master’s Degree, graduates are also conferred the ICVS – International Certified Valuation Specialist credential.

The primary discussion surrounded the topic of education, core training and continuing education.  Michael Badham presented to the delegates the course offerings provided by iiBV (a new member of IACVS since the last WCM).  iiBv’s advanced courses are in the process of being completed for on-line use in either classrooms or individual settings.  Michael expects most of the offerings to be ready by the end of 2018, early 2019.  These courses will provide BV professionals with opportunities to learn advanced technics and practices, but will also provide an easy method to fulfill the IACVS continuing education requirements.

Of great importance to all IACVS members is moving our core training program to an on-line platform.  The charter leaders, included members of academia, impressed upon the Council delegates that new (young) professionals are demanding an opportunity for professional education accessable through a laptop computer at convenient times.  There are numerous professional organizations that have already accomplished this change of platform.  (IACVS created an on-line venue for core training several years ago, but has apparently not properly promoted it). 

Based upon the various opinions of the delegates and especially those involved in higher education, IACVS will make it a priority to update the on-line version of the present core training materials by early 2019.  The written materials were updated and released in early 2018. This effort will also include a practice examination for the ICVS credential to assist candidates with their study efforts. 

The WCM was graced by a visit from Nick Talbot, Executive Director of IVSC.  The IVSC annual general meeting was held over the next three days in Dubai, and included delegates from more than 35 countries and addressed issues concerning the global valuation and appraisal professions.

We are seeking interest from our Charters/Chapters to host the 12th World Council Meeting (in 2019).  It would be ideal to hold the WCM when the Charter/Chapters holds their own Valuation Conference.  Past WCMs have been held in Frankfurt, Seoul, Taipei, Xi’an, Beijing, Chicago, Malaysia and Dubai.

Thank you for attending!

Respectfully submitted

IACVS HQ

December 7-8, 2018  Wuhan, China

The International Association of Certified Valuation Specialists(IACVS) will be the sponsor of the 8th International Conference on New Development of Appraisal to be held by the School of Business Administration (MBA Education Center) at Zhongnan University of Economics and Law, Wuhan, Hubei Province, China, during 7-8 December, 2018. The conference Theme is “Appraisal in the Age of AI: Inheritance and Innovation”.

Delegates will include influential stakeholders from governments, business, and non-governmental organizations, academics, policymakers, and appraisal institutes. Mr. William Hanlin,  President & CEO of IACVS, will attend and present a speech at the conference.

Registration

Registration Fees: RMB1000 per person, including conference materials and meals.

Important Timeline 

Registration Deadline: November 15, 2018

People in Contact
Dr. Wen Hao (mobile phone: +86-13986003448)
Dr.Wang Juanjuan(mobile phone: +86-15327151891)
Tel: +86-27-8838-3883
Contact email:  ivforum2018@163.com

ANEVAR, the national valuation and appraisal society in Romania, held its annual valuation conference in Bucharest, which is Romania's capital and largest city, as well as the most important industrial and commercial center of the country. With 2 million inhabitants in the city proper and more than 2.4 million in the urban area, Bucharest is one of the largest cities in Southeastern Europe. Bucharest is the 6th largest city in the European Union by population within city limits, after London, Berlin, Madrid, Rome, and Paris. 

This conference saw more than 250 attendees, representing more than 20 countries.  

ANEVAR is Europe’s oldest valuation society, founded in 1992.  They have held this conference annually for many years. The conference opened with greetings from President Dana Ababei, followed by Nick Talbot from IVSC.

IACVS was given time to present the Honorary Member award to Gheorghe Badescu, founder of ANEVAR.  Only the fourth recipient of this award, Gheorge had been a life-long contributor to both the institution of business valuation and the on-going conversation to develop and adopt common valuation theories and models to be used by all valuators around the world.

Technical topics that were presented included:

* Valuers of All Asset Categories by Anton Lezhja.  Anton discussed the need to evaluate the resources require to do a complete job of valuation, including property, machinery and equipment and intangibles.  Doing this analysis early in the engagement will lead to better management of completion dates and estimation of engagement fees.

* Early Stage Company Valuation by Diana Nikolaeva.  Diana described the challenges valuators face when engaged for early stage/start up valuations.  The difficulties arise from the different needs of stakeholders for M&A, financial reporting, the search for public information including comparables, and regulatory scrutiny.

* The Use of Multiples by Mauro Bini.  The market approach has always presented challenges for valuation.  How do you search for relevant data?  How should market multiples be adjusted or modified for specific engagements?  The task of the professional valuer is to remain topical and relevant.

* Using Black Scholes for Valuing Shares by Andrew Strickland.  Valuing company shares can be complicated by the needs and motivation of the enterprise and its shareholders.  Higher values can mean the promise of future rewards.  Lower values could be a disincentive to current and future employees.  Andrew discussed the options facing the valuator when using Black Scholes.

* Market Multiples and Incremental Risks by Jeff Tarbell.  This presentation described the similarities between the market and income approach.  In using market multiples, Mr. Tarbell describes how we can reduce the subjectivity in selecting market multiples.

* Evaluating Risk in Retail Property by Don Gilbert.  Mr. Gilbert presented his model for analyzing commercial retail rents in a relevant way as to be able to predict trends in future rental rates that would be sustainable for the near and long-term tenant.  Mr. Gilbert has created a clever computer template that adjusts suggested rental rates depending on historical rates, expected future economic trends, space availability and more.

* Transactional Asset Pricing Approach (TAPA) by Andrey Artemenkov.  Dr. Artemenkov presented a newer approach for valuing an enterprise using a combination of historical ratios and future economic measurements and predictions.  Current models usually assume that markets are efficient and will continue to be efficient into the future.  Dr. Artemenkov says a newer model is needed to allow for market imperfects that can reduce the tendency to overstate values.

The conference was followed by a gala banquet filled with awards, tributes performances and wonderful cuisine.  I am looking forward to attending future conferences in Bucharest!

The Business Valuers Association of Malaysia (BVAM) and the IACVS Malaysia Charter have successfully conducted the fourth ICVS Certification Training Class in Malaysia from August 4 to 6, 2018. 27 candidates from Malaysia, Singapore took part in the training course.

Sr Elvin Fernandez，the President of BVAM, taught the business valuation theories and methodologies, and answered many questions from candidates. Ms Jowis Ng has 10 years of corporate finance experience, shared many examples and case studies from an experienced practitioner’s perspective. Dato’ Sr Lau Wai Seang met with candidates and imparted her personal experience and real life cases while teaching the topic on Best Practice for Intangibles valuation class. 

All participants were encouraged to utilize the IACVS world-wide network to develop their practices through participating in local and global events.

On August 18, 27 attendees sit for the ICVS multiple choice exam. The exam is proctored by Ms. Lisa Guo from IACVS headquarters and Mr. Sr Mohd Zamri bin Awang from INSPEN. 

We are looking forward to the next training which will most likely be conducted in February 2019.