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necessarily an approximation, it is not required that the value
that we determine be one as to which there is specific testimony,
provided that it is within the range of figures that properly may
be deduced from the evidence. See id.
As in most valuation cases, the parties in the instant case
rely extensively on the opinions of their respective experts to
support their differing views about the fair market value on the
valuation date. Each expert utilizes the net asset value method
in order to value Mr. Borgatello's interest in VIC. For purposes
of determining the appropriate discount to be applied to VIC's
assets, the estate introduced the report of James Brockardt, who
asserts that the net asset value of VIC should be discounted by
35 percent for lack of marketability. Respondent offered the
report of Roger Wilde, who asserts that VIC's net asset value
should be discounted by 27 percent for lack of marketability.
Mr. Wilde arrives at his discount using a build-up method.
Mr. Wilde examines various factors and assigns a percentage value
to each. Some factors increase and some decrease the net asset
value discount. Wilde made the following adjustments to be
included in the discount for lack of marketability:
1. Shareholder dividends and compensation paid - 5%
2. Local economy and real estate market at 1/12/94 + 5%
3. Management continuity - 2%
4. Potential corporate gain and tax + 19%
5. Restrictions on stock transfer + 3%
6. Transaction and other costs + 7%
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