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As indicated in our findings, around 1994 Mr. and Mrs. Myers
had decided not to seek to increase the size of petitioner’s
business. At that point, petitioner had reached the maximum size
they felt comfortable managing and operating. If petitioner’s
contracting business had expanded substantially, Mr. Myers would
no longer have been able to manage and be personally responsible
for all of petitioner’s construction work. Mr. and Mrs. Myers
further believed it would be difficult to find and hire qualified
additional employees to perform any of the same functions as Mr.
Myers. At any rate, they were unwilling to make the substantial
additional financial commitment needed if petitioner were to
attempt to grow substantially, particularly since petitioner at
this time had relatively little debt. Indeed, as respondent’s
expert suggested, petitioner’s contracting business was similar
to other small, family-owned-and-run construction contracting
businesses, distinguished from them only by its relatively
outstanding ability to generate funds to pay dividends and
compensation to its shareholders.
Petitioner grossed more than $3.2 million annually from its
foundation and flat work construction business for its 1993
through 1995 fiscal years. For the 1996 fiscal year in issue,
petitioner grossed more than $4.5 million and poured more than
600 foundations. It has employed up to as many as 35 to 40
construction workers during a year. Mr. and Mrs. Myers were the
only members of petitioner’s management team and performed
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