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the companies used for comparison had operating characteristics
like PCAB’s. PCAB’s operations involved the sale of a very high
percentage of product bottled elsewhere. We are not convinced
that this is typical of other bottlers. Consequently, we find
the market transaction analysis to be unpersuasive.
Acquisition Analysis
BVS reviewed the sale of PCAB 2 years subsequent to the
valuation date to provide evidence of value. The 1989 sale price
for 100 percent of PCAB was $13,900,000. This price is the
unadjusted base price called for in the contract for sale.
Petitioner argues that a more appropriate amount would be
$12,436,085, which is the amount specified in a subsequent
closing agreement between Nikita Maggos and respondent as the
price obtained for the stock. The BVS report states that due to
the period of time between the valuation date and the 1989 sale
“we placed no weight on this analysis, but present the
information to provide additional information by which to
evaluate the accuracy of our conclusions.”
Petitioner’s Expert
Petitioner employed the services of Corporate Financial
Consultants (CFC). CFC also valued 567 shares of the common
stock of PCAB as of May 1, 1987. Mr. Kenneth McGraw, a principal
of CFC, is the author of the CFC report and testified at trial.
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