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1992 acquisitions were discounted by approximately 59 percent and
65 percent, respectively, and the 1995 acquisition was discounted
by approximately 36 percent. Again, Mr. Young’s estimate of fee
fair market value was used as the base.
The fifth and sixth series of partial acquisitions each
involved the acquisition of two 50-percent interests. The fifth
consisted of acquisitions in 1995 and 1997 with discounts of
approximately 67 percent and 50 percent, respectively. The sixth
partial acquisition involved two 1997 purchases with fractional
interest discounts of approximately 38 percent and 44 percent,
respectively.
Mr. Young did not conclude that a particular percentage
would be appropriate for the partial interests that we consider
in these cases. Instead, Mr. Young opined that on the basis of
the above-described transactions, a discount of at least 50
percent was appropriate for valuing a partial undivided interest
in Louisiana timberland.
Mr. Young did adjust for differences that might occur where
fractional sales were actually acquisitions by a majority holder.
He showed that substantially smaller fractional discounts
occurred in transactions where the buyer had or achieved control.
Conversely, the discounts were substantially larger where buyers
were purchasing a partial interest and did not have control of
the fee.
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