-82-
total value of $134,383,364.53 Mr. Huck testified that the 11.5-
percent discount rate he determined was based on the "receivable
yield amount" or "receivable yield". In his view, the 11.5-percent
discount rate is consistent with the 11.49-percent yield on the
leases discussed in the March Agreement.
Mr. Huck based his analysis on financing for the net
receivables with both debt and equity. He concluded that, under
the residual method, the purchase price ($141,456,620) was less
than the sum of the fair market value of the lease receivables and
the other tangible assets acquired ($144,343,582), and hence no
portion of the purchase price should be allocated to goodwill or
going-concern value.
2. Respondent's Expert
Respondent's expert, David N. Fuller, of Business Valuation
Services, Inc., has an M.B.A. from Southern Methodist University.
He is a chartered financial analyst and an accredited senior
appraiser certified by the American Society of Appraisers. Mr.
Fuller wrote a rebuttal report54 and testified regarding the fair
53 Mr. Huck initially made a mathematical error of
approximately $700,000 (with regard to cash inflow) but
subsequently corrected the error.
54 Mr. Fuller only prepared a rebuttal report because he
believed the information petitioner provided contained
insufficient and questionable data to determine a precise value
for the lease portfolio. Based on the record, we believe the
(continued...)
Page: Previous 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 NextLast modified: May 25, 2011