- 53 -
APPENDIX B
Comparison of Experts’ Valuation of
Williamsburg Vacations, Inc. Stock
As of February 15, 1990
Valuation Of Powhatan Associates
Petitioners’ Respondent’s
Expert Experts
“Pre-tax” value of Powhatan $22,456,921 $35,001,760
“Post-tax” value of Powhatan 13,968,205
Pro-rata value of 1/3 joint
venture interest 4,656,000 11,667,253
Discount for lack of control 15% (698,400) 5% (583,363)
Discount for lack of
marketability 30% (1,187,280) 10% (1,108,389)
Fair market value of Powhatan
1/3 interest 2,770,320 9,975,502
Valuation Of WVI
Petitioners’ Respondent’s
Expert Experts1
Shareholders’ equity, 12/31/89 $1,189,400 $1,189,397
Estimated earnings to 2/15/90 348,794
Fair market value of Powhatan 2,770,320 9,975,502
Fair market value of development
fee income 799,000 1,557,915
FMV promissory note from shareholder 19,223
Land held for investment 10,000 10,000
Other changes to assets 22,126
Cost basis of Powhatan joint venture (546,560) (546,556)
Book amount of promissory note (192,230)
Land held for investment at cost (357,000) (357,000)
Tax adjustment (4,391,591)
Other changes to liabilities (12,881)
4,040,947 7,466,912
Contingency discount 15% (606,142) ---
Fair market value of Williamsburg
Vacations, Inc. 3,434,805 7,466,912
1 We are mindful that several mathematical errors exist in
respondent’s computation. We do not believe these discrepancies are
material.
Page: Previous 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 NextLast modified: May 25, 2011