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We found Lee's appraisal report, published under Ernst &
Young's aegis, to be useful and informative in summarizing some
of the facts and issues which are in dispute here. However, his
report suffers from unexplained assumptions. For example, in his
report, he concluded that Scherer would not find it difficult to
compete with petitioner. At trial, Lee conceded that Scherer did
not have a relationship with either the suppliers or distributors
of Old Lorvic's products. The record manifests that Scherer had
a detached relationship with its affiliate, Old Lorvic, other
than the periodic reports that Nemanick submitted to the parent
company. Hence, Scherer did not develop business or personal
relationships with the suppliers or distributors. Moreover, Lee
evidently disregarded the fact that, in essence, Old Lorvic was
managed by the Nemanick family and assumed that Scherer could
have induced petitioner's employees through increased financial
compensation to work for Scherer. In that connection, we observe
that Scherer did not retain any of Old Lorvic's employees
subsequent to the 1989 purchase.
Also, in his report, Lee stated that the fair market value
of certain real property was consistent with an appraisal made in
10(...continued)
the noncompete and employment agreements. In contrast,
petitioner here relies heavily on experts and sparse
documentation.
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