Estate of Charles a. Boratello, Deceased, C. Norman Borgatello and Josephine E. Donnelly, Co-Executors, and C. Norman Borgatello, Successor Trustee to the Charles A. Borgatello Living Trust - Page 34




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            inclination to purchase enough of the stock to force Mr.                                   
            Borgatello's 82.76 percent block to be sold in two smaller                                 
            blocks.  More importantly, our analysis presumes that the                                  
            transaction involves a willing buyer and a willing seller under                            
            no particular compulsion to enter into a transaction.  We                                  
            seriously doubt that a willing seller under no compulsion to sell                          
            would dispose of an 82.76-percent block of stock in the manner                             
            suggested by the estate.  What is more likely is that the buyer                            
            and seller would seek assurances from the other shareholders that                          
            they would not interfere in the transaction by exercising their                            
            rights pursuant to the stock purchase agreement.  This would add                           
            some uncertainty and a chilling effect to the transaction, but                             
            not to the extent that the estate argues.  Consequently, we                                
            accept respondent's assessment of the stock purchase agreement                             
            and discount the net asset value by 3 percent for that factor.                             
                  The final adjustment Mr. Wilde makes to the net asset value                          
            accounts for transaction costs associated with the eventual sale                           
            of the assets.  Mr. Wilde's estimation of these transaction costs                          
            is 7 percent of the net asset value.  In an immediate                                      
            liquidation, Mr. Brockardt estimates these costs to be 5.7                                 
            percent of the net asset value.  Given the narrow range of these                           
            figures, we think a 6-percent discount for transaction costs is a                          
            reasonable estimate.                                                                       





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