- 45 -
appropriate for both the class A voting and class B nonvoting
shares.
After applying this 35-percent lack of marketability discount
(to the $4,560.18 per-share value), Mr. Much concluded that as of
the valuation date, the fair market value of both the 18 class A
voting shares and 3,942.048 class B nonvoting shares of J.R.
Simplot Co., on a nonmarketable, minority-interest basis, was
$2,964.10 per share (based on a combined 141,365.029 shares of J.R.
Simplot Co.'s common stock issued and outstanding).
2. John R. Ettelson
Petitioner's second expert, John R. Ettelson, is a senior
banker in the corporate finance department of William Blair & Co.,
L.L.C., an investment banking and securities brokerage firm. Mr.
Ettelson was requested to render an opinion as to the voting rights
premium, if any, to be assigned to decedent's 18 class A voting
shares vis-a-vis decedent's 3,942.048 class B nonvoting shares. He
was not requested to render an opinion as to the per-share value of
the class A or class B stock as of decedent's death. In performing
his assignment, he focused on those public corporation having a
substantial value with the per-share price of their stock being
high (rather than low), working under the assumption that the
equity value of J.R. Simplot Co. on the valuation date was in
excess of $600 million and the value of its shares in excess of
$3,000 per share.
Mr. Ettelson began his analysis by considering the mindset and
objectives of a hypothetical buyer of decedent's 18 class A voting
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