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The values computed by Mr. Siwicki are slightly different
from the above values because of rounding.
Respondent's Expert
Respondent relies on the testimony and expert report
of Dr. Samuel J. Kursh who is certified as a business
appraiser by the Institute of Business Appraisers, Inc.,
and holds a doctorate in business administration from
George Washington University.
Dr. Kursh valued the subject limited partnership
interest using only the capitalization of income approach.
According to Dr. Kursh, the net asset value approach is
inappropriate for valuing the subject interest in Hill
House because the partnership's underlying asset was
income-producing real estate. Respondent argues that the
net asset value is irrelevant because a hypothetical buyer
could not control the sale of the underlying property or
the liquidation of the partnership.
Dr. Kursh began his valuation by computing a discount
rate. To do this, he selected comparables from the limited
partnerships referenced in the May/June 1993 edition of
"The Perspective". This is the same publication used by
petitioner’s expert but a later edition. Dr. Kursh
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