Valuation For Mergers and Acquisitions/Insurance Issues

Date: Wednesday, March 8, 2023
Time: 02:00 PM ET / 01:00 PM CT / 12:00 PM MT / 11:00 AM PT [Prevailing Time]
Presenters: Jeffrey Berg, ARA, ASA, President, Crown Appraisals, Inc., Tyler Walsh, CPA/ABV, ARA, Partner, Crown Appraisals, Inc.
Moderator: Wayne Sine, CPA, MBA, Director of Education, National Society of Accountants for Cooperatives
Learning Objectives:
--Consolidation in Agribusiness and Economic Drivers
--Appraisal Methodology Basics
--Market Value of the Going Concern / Intangible Assets
--Insurance Issues and Valuation
Field of Study: Business Management & Organization
Program Level: Basic
CPE Credit: 1 Credit Hour
Delivery Method: Group Internet-based
Prerequisite(s): No advanced preparation or prerequisites are required for this course.
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Course Description

Consolidation is an ongoing process in American Agribusiness, including Ag Cooperatives.  Scores of grain elevators, feed mills, and fertilizer/agronomy businesses across the United States are involved in negotiations pertaining to potential mergers and acquisitions.  Mergers are driven by a number of factors, which are identified in this presentation. 

A challenging economy and constant market fluctuations make asset valuations difficult.  Asset valuation is critical to the structure of successful mergers and acquisitions.  Inaccurate asset valuations may result in overpayment for certain assets; or too little being allocated to certain assets. 

This presentation will discuss the challenging economy we face today and how the market fluctuations impact agribusiness valuations.  Tyler Walsh, Partner, & Jeffrey Berg, President, Crown Appraisals, Inc. will briefly discuss the basic appraisal approaches to valuing assets and how the values concluded are all supported by market data.  The conversation will dive into identifying intangible assets in an agribusiness operation and their impact on a merger or acquisition.  This session will conclude with how asset valuations can be used for property insurance issues.

Presenter and Moderator Bios

Presenter: Jeffrey Berg, ARA, ASA, President, Crown Appraisals, Inc.

Jeff Berg, ARA, ASA. is the President of Crown Appraisals, Inc.  Crown Appraisals specializes in the appraisal of agricultural and commercial real estate. Agri-business appraisal experience includes the following classes of real estate: feed mills, grain elevators, dry edible bean processing plants, seed plants, potato warehouses, fruit & vegetable processing & storage facilities, food processing facilities, rice milling facilities, fertilizer facilities, convenience stores, bulk fuel facilities, manufacturing plants and equipment dealerships. Agricultural appraisal experience includes farmland, on-farm grain handling and storage facilities, feedlots, hog confinement facilities, large free-stall dairy facilities, and general farm buildings.

In today’s increasingly intense and complicated market, Jeff’s education and experience uniquely qualify him to appraise equipment-intensive agribusiness facilities. Jeff has spent the last 35+ years in the grain, seed, and fertilizer industry.  Jeff Berg has extensive experience in the appraisal of aggregate and gravel reserves. Experience includes expert witness testimony in Federal Bankruptcy Court, IRS Tax court, and various district courts. Equipment appraisal experience includes food processing, grain handling, feed milling, seed processing, industrial manufacturing, construction and agricultural equipment. 

In 2014 Jeff authored an appraisal course for the ASFMRA titled “Key Elements of Grain Elevator Appraisal”. He has taught the class to over 350 fellow appraisers throughout the country at various ASFMRA events.

MEMBER:

  • Accredited Rural Appraiser (ARA) membership designation--the American Society of Farm Managers and Rural Appraisers, Inc.
  • Accredited Senior Appraiser (ASA) membership designation--Machinery & Equipment Specialty--American Society of Appraisers
  • Certified Federal General Appraiser License: MN #40360527; ND #CG-1050; SD #118CG; IA #CG03191; CO #100050561;
    MT #REA-RAG-LIC-8551; WI #1395-10; IL #553.001487; IN #CG41500069; WY #AP-1406; OR #C001223; NE #CG2017015R;
    ID #CGA-4551; OH #2017004274; AR #CG-4163; MO #2018038790; WA #1102536; KS #G-3336; LA #G4466; MI #1201076623 TX
    #TX 1381133 G
  • Instructor: ASFMRA--Fundamentals, Principles, and Advanced Rural Appraisal Courses and numerous ASFMRA seminars
  • Instructor: National Uniform Standards of Professional Appraisal Practice (USPAP) Course, Recertified for current USPAP Course
  • ASFMRA National Appraisal Education Committee Chairman, 2002-2005; Accreditation Chairman, 2006-2008;
  • 2005 recipient of H.E. “Buck” Stalcup Excellence in Education Award from ASFMRA
  • Recipient of 2008 ASFMRA Appraisal Professional of the Year Award
  • National ASFMRA President, 2011/2012
  • Member of NSAC—National Society of Accountants for Cooperatives

CORE APPRAISAL EDUCATION:

  • American Society of Farm Managers and Rural Appraisers, Inc. courses:
  • A-27 and A-28, Income Capitalization courses, 1993 & 1994
  • A-20 & A-30, Principles of Rural Appraisal & Advanced Rural Appraisal, 1988 & 1991
  • A-25, Eminent Domain Seminar, February 1991, Denver, CO
  • A-35, Advanced Appraisal Review, March 2004, St. Cloud, MN
  • A-40, Advanced Rural Appraisal Case Studies, June 1991, St. Paul, MN
  • American Society of Appraisers courses:
  • ME201, 202, & 203 Machinery and Equipment Valuation courses, 1993 & 1994
  • ME204 Machinery & Equipment Valuation: Advanced Topics & Report Writing, 4-94, Washington, DC
  • ME205 Income Approach, Discount Rate Development & Complex Case Studies, 2-98, San Francisco, CA
  • RP401 Allocating Components in Going Concern Appraisals, April 2016, Atlanta, GA

APPRAISAL INSTITUTE COURSES:

  • Fundamentals of Separating Real Property, Personal Property and Intangible Business Assets, April 2012, St. Paul, MN
  • B.A. Agriculture/Business Administration, Ambassador University, Big Sandy, TX, 1972
  • ASFMRA & ASA conduct mandatory programs of continuing education. I am current with the requirements of the programs. Continuing
    education classes are not listed

Presenter: Tyler Walsh, CPA/ABV, ARA, Partner, Crown Appraisals, Inc.

Tyler Walsh graduated in December 2014 with a bachelor’s degree in Accounting. Knowledge and appraisal experience are courtesy of Crown Appraisals, Inc. Appraisal experience, among others, includes grain elevators, seed cleaning/processing plants, fertilizer/agronomy facilities, feed mills, and light industrial manufacturing facilities. Tyler received his CPA designation in December 2015 and received his ABV business valuation designation in January 2018. Tyler received his ARA appraisal designation from the ASFMRA in November 2020.

MEMBER:

  • Accredited Rural Appraiser (ARA) membership designation--American Society of Farm Managers & Rural Appraisers (ASFMRA)
  • Member of Minnesota Chapter—American Society of Farm Managers & Rural Appraisers
  • Member of North Dakota Chapter—American Society of Farm Managers & Rural Appraisers
  • Member of AICPA—American Institute of Certified Public Accountants
  • Member of ASA—American Society of Appraisers
  • Member of North Dakota CPA Society
  • Member of NSAC—National Society of Accountants for Cooperatives

CORE APPRAISAL EDUCATION:

  • American Society of Farm Managers & Rural Appraisers courses:
  • A290, General Market Analysis and Highest & Best Use, July 2015, Omaha, NE
  • A301, Cost Approach for General Appraisers, May 2015, Denver, CO
  • A302, Sales Comparison Approach for General Appraisers, April 2015, Denver, CO
  • A303, Income Approach for General Appraisers Part I, June 2015, Denver, CO
  • A304, Integrated Approaches to Value, May 2016, Denver, CO
  • A315, Valuation of Conservation Easements and Other Partial Interests in Real Estate, July 2017, Omaha, NE
  • A250, Eminent Domain, March 2020, Denver, CO
  • A400, Advanced Rural Case Studies, October 2020, Online
  • A500, Advanced Appraisal Exam Preparation Course, November 2020, Online

APPRAISAL INSTITUTE COURSES:

  • Basic Appraisal Principles, February 2015, St. Paul, MN
  • Basic Appraisal Procedures, February 2015, St. Paul, MN
  • 15-Hour National USPAP Course, March 2015, St. Paul, MN
  • General Appraiser Report Writing, December 2015, St. Paul, MN
  • General Appraiser Income Approach Part 2, August 2017, St. Paul, MN
  • Real Estate Finance, Statistics, and Valuation Modeling, September 2017, Chicago, IL

American Society of Appraisers courses:

  • RP401, Allocating Components in Going Concern Appraisals, April 2016, Atlanta, GA
  • BV201, Introduction to Business Valuation, Market Approach, May 2016, Las Vegas, NV
  • BV202, Introduction to Business Valuation, Income Approach, September 2016, Boca Raton, FL
  • BV203, Introduction to Business Valuation, Asset Approach, Discounts, & Premiums, May 2017, Herndon, VA
  • BV204, Advanced Topics in Business Valuation, June 2017, Chicago, IL
  • ME201, Introduction to Machinery & Equipment Valuation, August 2020, Online
  • ME202, Machinery & Equipment Methodology, October 2020, Online

Professional Appraisers Association of South Dakota courses:

  • Training Course for Supervisory Appraisers and State-Registered Appraisers, June 2015, Pierre, SD
  • B.S. Accounting, Minnesota State University Moorhead, Moorhead, MN

Moderator: Wayne Sine, CPA, MBA, Director of Education, National Society of Accountants for Cooperatives

Wayne Sine is an experienced and highly knowledgeable professional in the field of Tax. Wayne recently retired as Tax Director from his company, Southern States Cooperative. He has extensive experience working with agricultural cooperatives and has been a long-time member of the NSAC. He is extremely active in the NSAC, serving as both past Chapter President of the Atlantic Chapter, and past Chair of the Tax Committee, and is currently serving as the NSAC Director of Education.. Wayne's career is marked by several accomplishments, and he has always been involved in many organizations, spreading his knowledge. Wayne is a member of the Legal, Tax, and Accounting (LTA) Committee for the National Council of Farmer Cooperatives. He is also Past Chair of both the Tax Committee of the Virginia Chamber of Commerce and the Virginia Manufacturers Association. Wayne also served on the Tax Policy Committee at the Virginia Society of CPAs and served as past Region Vice President for the Tax Executives Institute. 

Cost
Free for NSAC Members / $56.00 for Non-Members

Delivery System

  • All programs are delivered using the Zoom platform.
  • Confirmations will include log-in instructions.
  • Participants are able to participate using any device with an Internet connect (if the device does not have speakers, the participant can also dial-in) or they can participate with audio only by dialing in.
  • All registrants will receive a link to the CLN’s recording by email within 48 business hours of event’s conclusion.
  • There will be assistance available to help with technical and connectivity issues up to 10 minutes prior to the start of the presentation.

Registration

All registration is done on-line and each guest must provide their name and email address to participate. All NSAC members may register for free. Non-members may register for a nominal fee.

Refund Policy

NSAC will not issue refunds for CLNs. If a registrant is unable to participate in the CLN and provides notification to info@nsacoop.org 48 hours prior to the session, a credit will be provided for a future CLN. Alert the NSAC staff member monitoring the CLN if technical difficulties are encountered and technical support will be provided to eliminate problems with future CLNs.

Additional Information

Live participation is required for CPE credit and polling questions must be answered to document your active participation. All registrants will receive an email following the session with links to the slides and/or handouts, and a link to the CLN recording (unless otherwise stated). If you are unable to participate in the live session, you can still watch the recorded session, but you will not be eligible for CPE credits. Those eligible for credits will receive their certificate by email with 7 business days.

For more information regarding NSAC CLNs or administrative policies such as complaint and refund, contact the NSAC Headquarters, 7946 Clyo Road, Suite A, Centerville, OH 45459, 937-222-6707, or info@nsacoop.org.

What is NSAC's Cooperative Learning Network?
The NSAC Cooperative Learning Network is a live, interactive webinar, and you can attend from any location with internet and/or telephone access. NSAC members can attend an unlimited number of CLNs at no charge!

Each Cooperative Learning Network will have one or more speakers who are recognized experts on the topic. CLNs typically include a Q&A session where participants can ask questions live or by chat. No advance preparation or prerequisites are required, unless otherwise stated in the course information. Attendees are able to download copies of the slides and/or handouts and are provided a link to view the recording (unless the description states the session will not be recorded). These tools help continue your learning experience after the session.

CPE Credits
The National Society of Accountants for Cooperatives (NSAC) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor (#103068) of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

Delivery Method: Group-Internet Based.

Why NSAC Cooperative Learning Networks?

Fast.
No wasted time. Get right to the heart of the matter in a course designed to easily fit into your busy schedule.

Convenient.
No travel. No time out of the office. Listen and follow along from the comfort and convenience of your desk, device or conference room.

Easy.
A device with an Internet connection is all you need. If your device does not have sound capabilities, the ability to dial in from a telephone is available.

Ideal for multiple attendees.
Use a speakerphone and projector/monitor and invite as many people as you want to participate - at no extra cost to you.

Affordable.
NSAC Cooperative Learning Networks are free for members and available to non members at a fraction of the cost of travel and attendance fees for other high-priced conferences or seminars.