- 9 - In their respective original reports (expert reports), both experts relied on the market approach in determining the fair market value on the valuation date of decedent's 50-percent stock interest in B&W Longview. In applying that approach, each of those experts used a combination of the transaction method and the market multiple or guideline company method (market multiple method) in order to arrive at his opinion of that value. At trial, Mr. Bernstein and Mr. Harrell modified and/or abandoned portions of their respective expert reports, as follows: In applying the market approach to valuing the stock interest in question, petitioner's expert modified his application of the market multiple method (modified market multiple method), and respondent's expert modified his application of the transaction method (modified transaction method) and abandoned his determina- tion of value under the market multiple method. Consequently, both experts modified their respective opinions of the fair market value on the valuation date of decedent's 50-percent stock interest in B&W Longview. We have problems with the opinions of both experts. Mr. Bernstein relied on the market approach and applied an equally weighted combination of the transaction method and his modified market multiple method under that approach because he did not believe that either method alone produced what he consid- ered to be an accurate estimate of the fair market value on thePage: 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