- 29 -
because valuation necessarily results in an approximation, the
figure at which this Court arrives need not be one as to which
there is specific testimony if it is within the range of values
that may properly be arrived at from consideration of all the
evidence. See Silverman v. Commissioner, supra at 933; Alvary v.
United States, 302 F.2d 790, 795 (2d Cir. 1962).
Respondent’s Expert
Respondent employed the services of Business Valuation
Services, Inc. (BVS), to value 567 shares of the common stock of
PCAB as of May 1, 1987. David N. Fuller, a principal of BVS,
gave testimony at the trial. Mr. Fuller has an M.B.A. degree in
finance from Southern Methodist University, and is an accredited
senior appraiser as designated by the American Socy. of
Appraisers and a Chartered Financial Analyst.
The BVS report concluded that the fair market value of 567
shares of the common stock of PCAB on May 1, 1987, was
$7,938,000. This conclusion is based on 100 percent of the
common stock of PCAB having a value of $14 million. To arrive at
this conclusion, BVS prepared several separate analyses. BVS
prepared a discounted cash-flow, a guideline company, a market
transaction, and an acquisition analysis. Each is discussed
below.
Page: Previous 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 NextLast modified: May 25, 2011