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concluded that the fair market value for BCC was $4,541,678, and
decedent’s 43,080 BCC shares had a fair market value of
$3,778,676 as of the valuation date.
In valuing BCC, and comparing the multiple implicit in BCC’s
price to the multiples implicit in the sale prices of companies
he reviewed, Mr. Grizzle did not consider the value of BCC’s
nonoperating assets. He testified that in actual sales such
assets are not normally part of the transaction, as the seller
usually retains those assets.
B. Estate’s Expert Mr. Fodor
Mr. Fodor is a certified business appraiser. He is a member
of the Institute of Business Appraisers and the Appraisal
Foundation, organizations which he has served in a number of
capacities. Mr. Fodor has published articles and given lectures
regarding appraising. He has performed numerous appraisals for
business and litigation support purposes.
Mr. Fodor relied on a blend of income- and asset-based
valuation approaches to value BCC. For his income approach, Mr.
Fodor used a capitalization of earnings model. He began by
projecting BCC’s “net free cash flow capacity” for the year
immediately following the valuation date, relying on BCC’s
historical earnings data to do so. Mr. Fodor adjusted revenues
and expenses as he deemed appropriate to reflect earning
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