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Value of 56.7 Percent of PCAB Shares (Aggregated Minority
Basis)27
After making the appropriate adjustments, detailed above,
BVS’ discounted cash-flow analysis and CFC’s capitalization of
cash-flows analysis produce a very narrow range of values. As
stated above, the value of 100 percent of PCAB is approximately
$8,600,000. The corresponding value for a 56.7-percent interest
is approximately $4,900,000. We therefore find $4,900,000 to be
the best estimation of the value of 56.7 percent on an aggregated
minority basis.
Our conclusion is also generally supported by more
contemporaneous evaluations that were made by Robert Shircliff.
On brief petitioner states:
Between 1983 and 1989, there were three occasions on
which the parties retained neither by Petitioner nor
Respondent attempted to place a value on PCAB: the 1983
Shircliff Report; the Worksheet prepared by Shircliff
in 1987; and Pepsi-Metro’s 1989 purchase of 100% of the
stock of PCAB. Unlike the various valuation experts
retained by parties for litigation purposes for this
preceding and the District Court Litigation, the person
performing these valuations had no advocacy role. Each
had every reason to get the number right.
The 1983 Shircliff report valued the operating business at
$6,438,000. Petitioner’s expert calculated an adjustment to the
1983 Shircliff report “to reflect growth in net sales between
27We use the term “aggregated minority basis” to mean the
value of the company as a whole multiplied by the relevant
percentage of ownership.
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