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held banks which the experts determined were similar to RBI’s
banking company.
i. The Estate’s Expert
Mr. Schroeder obtained information relating to five banks
located in either Illinois or Missouri that were acquired within
the 9-month period before September 26, 1997. Mr. Schroeder
determined a range of multiples from the price-to-earnings,
price-to-equity, and price-to-assets ratios of the acquired
banks. Because Royal Banks appeared to be located in a more
urban area than the acquired banks and because of “the potential
of a significant pending loan impairment on a loan granted to
Jefferson Printing”, Mr. Schroeder selected multiples between the
median and the low end of the range derived from the acquired
banks. Mr. Schroeder determined a controlling interest value of
$25,920,000 for RBI stock using the transaction analysis.
ii. Respondent’s Expert
Mr. Herber obtained information concerning private banks
that were similar to RBI, focusing on privately held commercial
banks whose sales were announced and completed between January
1996 and September 26, 1997, and that had assets between $20 and
$200 million. He selected nine acquired banks that he determined
to be comparable to RBI. He determined average and median price-
to-earnings, price-to-equity, and price-to-assets ratios of the
acquired banks. He compared these ratios to RBI’s ratios and
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