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entity (New Pabst) of which Heileman was not a shareholder).
He ascertained the fair market values of petitioner, Olympia, and
New Pabst by reference to objective market price data, including
the competitive bids for the stock of Olympia and petitioner.
He did not ascertain a specific value for each of the breweries
and brands of beer. Rather, he ascertained an aggregate value
for all of the Transferred Assets.
In general, Weinberg valued the breweries and some of the
brands of beer by way of a five-step discounted cash-flow model
that he designed. First, he estimated the size of the total
market in total barrels and the expected share of the market that
a company or product could capture. Second, he used these
estimates to project future sales. Third, he modeled the cost
structure to measure the profits (or contribution to cash flow)
associated with a given level of sales. Fourth, he projected
future profit from the projection of sales and the model of cost
structure. Fifth, he discounted the future stream of profit to
arrive at its present value in 1983. Weinberg did not reference
comparable sales because, he stated, he does not find them
meaningful in the beer industry and he could not find any.
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