- 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 Next
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