Estate of Frederick Carl Gloeckner, Deceased, Joseph A. Simone, and Douglas Dillon, Co-Executors - Page 9

                                        - 9 -                                         
          preferred, and 6-percent preferred stock was $965, $40, and                 
          $54.55, respectively.                                                       
               Because he could find no acceptable comparable companies,              
          Sherman did not analyze the values of comparable companies in               
          determining the value of decedent’s shares.  Sherman gave little            
          or no weight to the 1988 sale.  Also, respondent instructed                 
          Sherman not to consider the 1987 redemption agreement.  Moreover,           
          Sherman did not:  (1) Make a site inspection of the company’s               
          premises, (2) interview the management of the company, (3) secure           
          information about the company from potential outside sources such           
          as suppliers, customers, competitors, or financial institutions,            
          or (4) obtain information about the company’s competitors.                  
          Finally, the only information that Sherman had on the industry in           
          which the company did business consisted of retail sales data               
          that was provided by a trade association.                                   
          The Company and the Horticultural Industry                                  
               The Company.  In January 1991, the company was not operated            
          in the most profitable manner:  In order to maintain its sales              
          levels, the company relied to a significant extent on many slow-            
          paying customers.  The company used antiquated methods for                  
          processing and tracking orders and accounts.  Many of the                   
          company’s operations were not computerized, and sales orders were           
          recorded manually.                                                          








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

Last modified: May 25, 2011