- 11 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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