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D. Court's Analysis and Conclusion
We have considered all of the testimony before us, as well as
the expert witness reports, and have weighed all other relevant
factors. As articulated by the parties, each expert witness report
is susceptible to criticism. We are unable to accept the moment-
of-death valuations given to the 1,226 shares of JPMS common stock
by any of the expert witnesses. Instead, we rely on our own
analysis, based on all the evidence in the record.
We begin our analysis by placing a $150 million value on JPMS
at the moment immediately prior to Mr. Mitchell's death. In
determining this value, we considered all the evidence but gave the
greatest consideration to Minnetonka's "real world" $125 million
offer in the fall of 1988 (which Mr. DeJoria found "a little
short") and Mr. DeJoria's representation to Mr. Taylor that he had
received from Gillette a $150 million offer plus a royalty of 2
percent of sales for a lifetime (which Mr. Taylor found to be an
offer he could not match).
We next consider the impact of Mr. Mitchell's death on JPMS.
Mr. Mitchell embodied JPMS to distributors, hair stylists, and
salon owners. He was vitally important to its product development,
marketing, and training. Moreover, he possessed a unique vision
that enabled him to foresee fashion trends in the hair styling
industry. It is clear that the loss of Mr. Mitchell, along with
the structural inadequacies of JPMS, created uncertainties as to
the future of JPMS at the moment of death.
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