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Klemm reached the conclusion, supported by his report, that the
fair market value of the shares, as of October 22, 1989, on a
minority interest basis, was $729,700, or $1.02 a share.3
In reaching his conclusion, Klemm relied on numerous sources
of information, including, specifically, the following:
1. Financial statements for the corporation for 1986
through 1989;
2. An equipment list and a depreciation schedule as of the
end of 1989;
3. Industry information gathered from various sources;
4. Information on the U.S. economy gathered from
various sources;
5. Information on comparative publicly traded companies
gathered from various sources; and
6. An interview with Bernard V. Vonderschmitt, president of
the corporation.
Klemm did not analyze financial statements for the
corporation for the first 6 months of 1990. He did consider
financial results for the first quarter of 1990, and he concluded
that revenue and pretax earning levels were “generally in line”
with such levels for the prior two quarters. Klemm did not make
any forecasts of future growth or sales.
3 Klemm calculates a value for the shares of $729,700 by
multiplying the number of shares (715,333) by $1.02. The number
715,333 multiplied by $1.02 is $729,640, rounded to the nearest
dollar.
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