- 34 -
because a 96-percent interest in Johnco represented control over
substantial timber assets.
In evaluating the marketability of Johnco's timber assets,
Mr. Burns determined that both the quality of the Timber Property
and conditions in the timber market were important. The primary
source of information for Mr. Burns' analysis was the Engineering
and Valuation report of Robert Baker, who also testified at
trial. Mr. Baker is an experienced forester employed as an
engineering revenue agent for respondent in his Shreveport,
Louisiana, office. His expertise and familiarity with timber in
central Louisiana were apparent in his report and testimony. In
his report, Mr. Baker concluded that the Timber Property was an
above-average property for several reasons: (1) It was a unique,
highly desirable tract due to its size, contiguous nature, and
past prudent management; (2) it was located within a very
competitive timber products market; and (3) it was being valued
at a time when the market for timber properties was viable and
active. Mr. Burns noted that the stipulated value of the Timber
Property was based on the market prices paid for similar
properties and concluded that because petitioner had not
presented any evidence that the Timber Property would be more
difficult to sell than comparable tracts, the appraised fair
market value of the Timber Property was a realistic and
realizable amount. While concluding that at least 94 percent of
Johnco's assets were marketable, Mr. Burns acknowledged the
possibility that a willing buyer interested primarily in the
Page: Previous 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 NextLast modified: May 25, 2011