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target companies as multiples of financial benchmarks. Then he
applied those multiples to the corresponding actual and projected
financial benchmarks of JPMS. Accordingly, Mr. Weiksner applied
his comparable acquisitions multiples to the normalized data for
JPMS that he created from his earnings model to determine a range
of control values for JPMS. The $110 million to $135 million
control value that he determined exceeded JPMS' comparable
companies value by approximately 29 percent and exceeded JPMS'
public value by approximately 43 percent, within his expectations
of an appropriate control premium.
In his discounted cash-flow analysis, Mr. Weiksner valued
JPMS as the sum of its projected cash-flows before financing costs
over several years plus an estimated value of the company at the
end of the forecast period, all discounted to present value. He
determined a range of terminal values through his comparable
companies analysis and a range of appropriate discount rates
through an adjusted weighted average cost of capital analysis. The
$115 million to $140 million control value that Mr. Weiksner
determined for JPMS through this analysis exceeded JPMS' comparable
companies value by approximately 34 percent and JPMS' public value
by approximately 49 percent, within his expectation of an
appropriate premium.
We note that at trial, Mr. Weiksner suggested a $110 million
to $135 million range of control values for JPMS on April 21, 1989.
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