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$2,607,474. By applying the discount of 51 percent
identified in the case of IDS Balcor, Mr. Siwicki computed
$1,277,662 as the value of the subject limited partnership
interest using the net asset value approach (i.e.,
$2,607,474 x .49).
Mr. Siwicki combined the values he computed under the
two approaches by weighting the capitalization approach by
75 percent and the net asset value approach by 25 percent.
Mr. Siwicki felt a 3-to-1 ratio adequately emphasized the
fact that the capitalization approach was the more
important approach for this partnership interest. This
resulted in a value of the subject limited partnership
interest of $1,495,136.
Mr. Siwicki then applied a 35-percent discount to the
above value to account for the lack of marketability of the
subject limited partnership interest. He reviewed various
market studies on illiquid securities to arrive at the
amount of this discount. In particular, he relied on a
study by the Securities and Exchange Commission (SEC) that
compared sales between 1966 and 1969 of the restricted
stock of companies that also had freely tradable, publicly
traded counterparts.
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