- 18 -
subsidiary to repay the parent's advances. Not all the assets of
the French subsidiary were stated on the balance sheet. Where a
business is sold as a going concern, there may be intangible
assets such as goodwill that enhance its value to the purchaser.
In a document apparently prepared for prospective buyers dated
January 1985, the value of the Wally Findlay Group is stated as
$41 million, of which approximately $11 million is accounted for
as “Trademark - Name Goodwill - etc.” In addition, an
unspecified amount of “goodwill” is included in the value
assigned to the New York gallery. Petitioners argue that none of
the approximately $11 million intangible value of the group is
attributable to the French subsidiary because ownership of the
tradename was held by the parent. If this logic were sound, then
presumably no goodwill would properly be attributable to the
New York gallery either. But there is reason to believe that the
French subsidiary contributed to the intangible value of the
group. Another promotional brochure entitled “Wally Findlay
Galleries International, SARL”, dated April 1986, contains
information believed to be of interest to prospective purchasers
of the “first important American gallery in Paris”. After
describing the inaugural exhibition in 1971, the brochure
summarizes achievements since that time:
This was the first of many spectacular
gala openings attended by European royalty,
the most socially prominent Parisians and
internationally known collectors. * * *
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011