Fundamentals of Industrial Valuation
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To order the book visit the online store.
After years of planning and effort, IAAO is excited to release a comprehensive textbook and corresponding workshop on industrial valuation.
Fundamentals of Industrial Valuation—the Book
IAAO President Marion Johnson initiated the project plan to write the book when he was chair of the Communications Committee in 2004. When asked about the release of the book Marion said, “I am pleased to finally see the successful conclusion of this complex and challenging project. The book fills an important niche in our publication offerings. IAAO is grateful to the author, John Lifflander, for sharing his expertise in this area.”
The textbook, Fundamentals of Industrial Valuation, is designed to provide a basic understanding and overview of the procedures and practices necessary to appraise industrial properties. Valuations of this type can be complex and challenging even for experienced appraisers. The text provides a foundation for further investigation and learning and it provides a starting point for persons who are considering industrial valuation as a possible career path.
The 298-page book includes introductory and overview chapters and basic instruction on how to prepare and perform an industrial appraisal. It also identifies physical types of industrial structures and discusses appropriate use of the three approaches to value—cost approach, income approach, and sales comparison approach. Another chapter covers valuation of industrial land and there are five chapters on the valuation of machinery and equipment. Other topics include intangible property, whole plant sales, contaminated property, introduction to financial analysis, appeals, and electronic filing of annual returns.
The book finishes with a chapter on the appraisal of custom manufacturing. This case study of an imaginary company takes readers through a simplified appraisal process that uses the skills and knowledge presented in the book. It provides a practical model for the entire appraisal process so readers can get a sense of how all the various skills and challenges are used together to reach a final comprehensive determination of value.
A special thanks goes to the book reviewers who took the time to offer their expertise and comments. The reviewers were C. Kevin Bokoske, Bill Carroll, Daniel Furdek, Kenneth Uhrich, Kenneth Voss, CAE, and Paul A. Welcome, CAE.
Workshop 257—
Fundamentals of Industrial Valuation
Fundamentals of Industrial Valuation
On April 23–24, 2007, IAAO conducted a pilot workshop for this workshop offering on fundamentals of industrial valuation. The pilot workshop was conducted by John Lifflander, who also authored the new book on the same topic.
The workshop was held immediately prior to the Councils & Sections Seminar at the Renaissance Seattle Hotel in downtown Seattle. The instructor and many of the workshop participants were from the Washington and Oregon area. Because many of the participants knew each other and the instructor it created an atmosphere that was conducive to critiquing and improving the content for future workshops. The workshop was intended as an intensive two-day overview of industrial valuation and not as an advanced workshop.
Participants offered many candid comments about the workshop and about learning opportunities they are seeking in this topic area. One of the most prevalent comments was that there was too much information for a two-day workshop. There were requests for an additional more comprehensive course to cover advanced topics in addition to the current workshop.
The workshop is now available as part of the approved IAAO professional development curriculum.
About the Author
John Lifflander authored both the book and the workshop. He is president of Covenant Consultants, Inc., an appraisal and property tax consulting firm, based in Washington state, that specializes in the valuation of semiconductor plants, paper mills, food processing plants, and other large industrial facilities. He was also an industrial appraiser for the Oregon Department of Revenue and an administrative law judge for the Oregon Construction Contractors Board and for the Oregon Department of Revenue where he adjudicated property tax appeals. Lifflander has been published numerous times, he teaches courses on industrial valuation, and he is an experienced consultant and expert witness for complex valuation litigation.