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of a control element on both sides of the transaction would
significantly increase the value of the remainder interest
transferred by Cyril because a control element would attach to
the remainder interest in Cyril’s shares. The number of shares
transferred by Cyril was larger than the number of shares
received by Cyril, the full fee-simple interest in the stock was
transferred by Cyril at his death, and Cyril’s life estate factor
in Joseph’s shares and the remainder factor in the stock he
transferred at death were approximately equal. The estate
presented no revised calculations or other evidence establishing
that the value transferred by Cyril, when adjusted for this
control element, was less than the consideration received from
Joseph. The estate has failed to present sufficient evidence to
establish that the values it assigns to the interests at issue
are reliable and accurate under an actual buyer and actual seller
standard.
The valuation methodology of Mr. Browning was questionable
in other areas as well. In determining the values of JM common
stock and Specialty common and preferred stocks, Mr. Browning
applied a lack of marketability and liquidity discount and a
minority interest discount on a combined basis, instead of
individually. For example, Mr. Browning added together the 35-
percent marketability and liquidity discount and the 25-percent
minority discount to get a combined discount of 60 percent, which
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