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Mr. Brockardt, on the other hand, presents a general discussion
of various factors, but does not assign a percentage value to any
of them. He bases his total discount on his judgment and
consideration of the factors as a whole. Thus, for example, Mr.
Wilde reveals exactly how much of a discount he allows for the
built-in gains in the assets of VIC, whereas with Mr.
Brockhardt's report, we do not know how much of the discount was
attributable to built-in gains. Mr. Wilde's build-up method
presents a useful framework to consider the various factors at
play in the instant case. Below, we consider those factors
within his framework and in light of Mr. Brockardt's report.
Mr. Wilde reduces the discount by 5 percent because of VIC's
"consistent and strong cash-flow (dividend payment capability)
and low vacancy rate of the [VIC's] shopping centers." Mr. Wilde
further states: "The Company's financial statements and dividend
policy indicate that the company has paid nominal dividends, but
does pay the controlling shareholder significant salary. This
would be a favorable factor for an investor in the shares being
valued."
Messrs. Marx and Holden accounted for the cash-flow provided
by the properties and the economic conditions of the Santa
Barbara area in their valuations of MVN and MVS. The estate
argues that when arriving at a value for the corporation, we
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