- 31 -
price of 55 to 60 percent of book value.13 Considering the
nonpublic market that existed at the relevant time and the prices
for which Savings shares actually were sold,14 we think it
extremely unlikely that any willing seller, not under any
compulsion to sell and seeking to maximize his or her profit,
would choose to sell his or her shares in the public market at a
45-to 50-percent discount from book value. We reject this
portion of petitioner's expert opinion.
Respondent's Expert's Opinion
Respondent's expert is Herbert T. Spiro (Spiro). Spiro is
the president of American Valuation Group, Inc., and he has
performed many valuations for respondent in the past. In his
report, Spiro considered the actual sales values and used the
market and income methods to value petitioner's Savings shares.
Spiro ultimately concluded that the fair market value of the
stock was $3,776,477 ($293 per share).
Spiro found seven publicly traded bank companies that were
sufficiently comparable to Savings to use for the market method
of valuation. Employing a methodology similar to that used by
13The experts assumed that only petitioner's shares would be
offered on the public market.
14The total number of shares that changed hands during the
12 months beginning on Oct. 9, 1991, is 4,136. This amount
includes the 1,111 shares sold by decedent and the 2,800 sold by
petitioner. All these shares sold for more than book value.
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