- 30 -
Schlegel GmbH
Shapiro
Shapiro used the same valuation methods set forth above in
valuing Schlegel GmbH. He calculated a cost-of-equity capital of
11.21 percent and a WACC of 8.46 percent. Applying this discount
rate to the IRS engineer cash-flow projections that were derived
from the VRC projections, Shapiro calculated a value for Schlegel
GmbH of $10 million, independent of the silent partnership.
Shapiro verified this amount using the market multiple
approaches described above. Application of the comparable
company market multiple analysis to Schlegel GmbH resulted in an
estimated value of $10.4 million. Shapiro noted, however, that
this valuation was more conjectural because the underlying data
were subject to some degree of error. In particular, it was
necessary to translate German financial statements and discern
the meanings of various terms and accounts. The market multiple
analysis from publicly traded comparables resulted in a value of
$7 million. Shapiro’s ultimate conclusion was that Schlegel GmbH
had a value of $10 million, exclusive of the silent partnership;
however, he made adjustments in his rebuttal report, restating
the value to be $8.4 million.
Page: Previous 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 NextLast modified: May 25, 2011