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assume that True Oil’s marketable minority value on June 4, 1994,
was equal to its value on June 30, 1994 (i.e., $30,780,000).
2. Marketability Discounts
a. Kimball Reports
The Kimball reports discussed two types of empirical studies
that WMA relied on to quantify marketability discounts for
closely held companies. Those studies analyzed discounts on
sales of restricted shares of publicly traded companies
(restricted shares studies) and discounts on private transactions
that preceded public offerings (pre-IPO studies).
The restricted shares studies sought to isolate
marketability from all other value-affecting factors by analyzing
the price differential between freely traded stock of a public
company and stock that is otherwise identical except for certain
time period restrictions on trading in the open market. The
Kimball reports discussed the results of eight studies that
covered the years 1966 through 1988, and found average
marketability discounts ranging from approximately 26 to 45
percent.
The Kimball reports also discussed two pre-IPO studies that
used data from SEC registration statements to compare share
prices of companies before and after they had gone public. The
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