American Appraisal Overview Valuation / Transaction Consulting / Real Estate Advisory / Fixed Asset...

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


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.


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


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.


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)


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


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.


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.


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.


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.


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


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.


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

[email protected]

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