Lorvic Holdings, Inc. - Page 31

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            that once Scherer was in the same business, it would become an                              
            effective competitor over time.  He did not adequately explain                              
            the premises behind the foregoing figure.  Moreover, Dr. Schutte                            
            stated that the most likely scenario involving possible                                     
            competition by Scherer was for the company to introduce one or                              
            more competing products in select niche markets.  However, Dr.                              
            Schutte appears to have calculated the possibility of competition                           
            in all of the products.  This, of course, results in an overall                             
            reduction in projected revenues.  We do not think that Dr.                                  
            Schutte's assumptions, in this regard, result in a consistent and                           
            accurate computation.                                                                       
                  On the other hand, respondent's expert, Wildt, provided                               
            significant detail and insight in his analysis of the 1989                                  
            transaction although there were some problems with his testimony                            
            and report.  For example, he was, in some respects, unfamiliar                              
            with New Lorvic's business or the nature of its operations.  He                             
            did not interview any of the principals or visit New Lorvic's                               
            management and operation facilities in an effort to ascertain the                           
            background and circumstances behind Scherer's sale of Old                                   
            Lorvic's assets.  Moreover, Wildt compared the company with                                 
            unnamed publicly traded companies in the dental supply market.                              
            However, his report does not indicate the comparable companies,                             
            the date, or sources of information.                                                        







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