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We turn to the qualifications and testimony of the three
witnesses whom the Court recognized as experts for purposes of
this proceeding. First, petitioner presented David P. Schutte,
Ph.D. (Dr. Schutte), a senior associate for Business Valuation
Services (BVS). Dr. Schutte possesses a Ph.D. in economics from
the University of Minnesota, an M.S. in applied math from the
University of Texas, and a B.A. in economics from the University
of California at Berkeley. Prior to his tenure with BVS, Dr.
Schutte taught finance at the University of North Texas. He has
also published articles on economics and finance and authored a
standard reference on business valuation.
Dr. Schutte reviewed the publicly available information,
such as Scherer's annual report, as well as internal,
confidential documents with respect to Scherer provided by
Nemanick. He also conducted discussions with Nemanick and Leck.
In calculating the value of the agreements, Dr. Schutte applied
the discounted present value of cash-flow to determine the value
of petitioner with and without the foregoing agreements. The
starting point of his calculation was his determination that the
value of the business with the agreements was $8,255,049. In his
report, Dr. Schutte pointed out that his conclusion was
consistent with the parties' valuation of Old Lorvic and the
agreements. Next, Dr. Schutte calculated the value of the
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