Estate of W. Clyde Wright - Page 10

                                        - 10 -                                         
               Both of petitioner's experts opined that a control premium              
          should not be applied to decedent's block of 201,408 shares                  
          because they believed that the shares (representing 23.8 percent             
          of the stock in Wilber Corp) did not constitute a controlling                
          interest.  Based on their valuations and on their analyses with              
          respect to the number of shares to be valued, petitioner's                   
          experts concluded that, as of October 20, 1990, the value of the             
          201,408 shares of Wilber Corp's stock that were owned by decedent            
          at the time of his death was $7,653,504, or $38 per share.                   
               Respondent's expert relied primarily on a market transaction            
          approach to valuation in concluding that, as of October 20, 1990,            
          the value of decedent's shares of stock in Wilber Corp was                   
          $13,562,815, or $67.34 per share.  Respondent's expert                       
          acknowledged that, in October of 1990, the economy was in a                  
          recession and that in the Northeast region the economy was                   
          experiencing a particular downturn due to financial difficulties             
          of its two primary industries, defense and finance.                          
               With respect, however, specifically to the Oneonta, New York            
          region, respondent's expert concluded that the region (because it            
          was more rural and less tied to the defense and finance                      
          industries) was less likely to be affected by general economic               
          difficulties of the Nation and of the Northeast region.                      
               Respondent's expert concluded that petitioner's experts'                
          valuations of the shares of stock in Wilber Corp were                        






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011