Coordinating Forensics, Valuation, Audit, and Tax Services Within DFK June 27, 2014

1. Coordinating Forensics, Valuation, Audit, and Tax Services Within DFKJune 27, 2014 David J. Pieton, CPA, ASA Shareholder | Business Valuation, Transaction Advisory and Litigation Support Services d. 412.471.3210 c. 412.996.4189 dpieton@kfmr.com KFMR Katz Ferraro McMurtry P.C. 300 Benedum-Trees Building 223 Fourth Avenue Pittsburgh PA, 15222 • Arlen S. Lasinsky, CPA, CFE, CFF, CTP • Director of Business Valuation and Litigation/Forensic Services • Direct Dial & Fax 847.282.6352 • ALasinsky@frrcpas.com • Frost Ruttenberg & Rothblatt PC • 111 S. Pfingsten Road • Suite 300 • Deerfield, IL 60015

2. Agenda • Objective of Presentation • Highlight • The professional accreditations within the FVS committee. • The types of the services the FVS committee members conduct. • Discuss how firms with no or little FVS service offerings could build this practice area and/or seek assistance with technical reviews. • Inquire of the audit and tax members topics of interest for next year’s MDC.

3. Objective of Presentation The Forensic and Valuation Services (FVS) Committee of DFK has traditionally held its annual fly-in meeting at a location and time surrounding a national valuation CPE event. With the increasing needs of valuation assistance for financial reporting as well as traditional needs for tax compliance, we are considering moving our annual fly-in meeting to align with the Multi-Disciplinary Conference (MDC).

4. Objective of Presentation cont’d • The benefits to the FVS, Audit and Tax members would be: • A true multi-disciplinary conference whereas audit and tax members could have forensic and valuation sessions available to enhance their knowledge. • The FVS members who also provide audit and tax services could likewise obtain their continuing educational requirements. • Broaden the pool of DFK member interaction to enhance the association and hopefully, keep more referrals within DFK.

5. Objective of Presentation cont’d • The clients receive additional valued services that they may not know are offered or that they should have. • Provides more “face time” with the client, whether it is the FVS member or the audit partner, the firm benefits. • Additional fees for the firm (not that is the primary purpose, but that is not a bad thing!) • Provides another networking source from our own clients. There is no better referral source than our clients .

6. Professional Accreditations Within the FVS Committee • ASA – Accredited Senior Appraiser (American Society of Appraisers) • Business, Intangible Asset and Healthcare Valuation Specialties • CVA – Certified Valuation Analyst (National Association of Certified Valuators and Analysts (NACVA) • ABV – Accredited in Business Valuation (AICPA)

7. Professional Accreditations Within the FVS Committee cont’d CFE – Certified Fraud Examiner (Association of Certified Fraud Examiners) CFF – Certified in Financial Forensics (AICPA) CFFA – Certified Forensic Financial Analyst (NACVA) MAFF – Master Analyst in Financial Forensics (NACVA)

8. Professional Accreditations Within the FVS Committee cont’d CFA – Chartered Financial Analyst (CFA Institute) CTP – Certified Treasury Professional (Association for Financial Professionals) AEP – Accredited Estate Planner Designation (National Association of Estate Planners & Councils) FINRA Series 82, Private Securities Offerings

9. Types of Services the FVS Committee Members Conduct • Assist audit with reviewing the work of an outside specialist. • Purchase price allocation ASC 805 • Stock compensation ASC 718/IRC 409a • Goodwill and intangible asset impairment ASC 350 • Assist in planning of audit with focus on risk areas • Forensic accounting and financial investigation engagements

10. Types of Services the FVS Committee Members Conduct cont’d Economic damage calculations and rebuttals Expert testimony Oppressed shareholder investigations and analyses Divorce matters – Property (existence, valuation, character); Income/earnings aspects; Personal expenditure (lifestyle) analyses

11. Types of Services the FVS Committee Members Conduct cont’d Bankruptcy, pre-filing, Chapter 11 and post-emergence valuation services Financial due diligence Evaluate internal controls and procedures Value LLC’s and FLP’s for gift and estate planning purposes Defend on accounting malpractice claims

12. Building a FVS Group and/or Seeking Technical Assistance for Reviews • KFMR experience • 2001 our firm had 1 part-time FVS staff • 2013 we had 2 ½ • 2014 we need 3 • How did we get there? • Calling DFK members to back office complex engagement and perform technical reviews of others. • Sharing marketing ideas. • Selling the DFK network not just our internal capabilities.

13. Building a FVS Group and/or Seeking Technical Assistance for Reviews • FR&R experience • Coming up on 60 years of serving the Chicago area and Midwest . • Performing business valuations for approximately 15 years. • 2008-Added two individuals to head up business valuations and litigation support/forensics. • 2014-We are holding our own, with the occasional need for additional assistance. • How did we get there? • Many years of experience in forensics, litigation and business valuations with a large marketing network. • Speaking at conferences, writing articles and networking. • Selling the concept of the entire team including the DFK network, i.e., the entire package.

14. Possible Topics for Next Year’s MDC Your thoughts on possible topics? What strikes your interest? Topics that can assist you in your work Topics that can taken back to your clients Purpose and objectives of future topics