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the controlling equity value of Black Hills Trucking on June 4
and June 30, 1994.
Respondent argues that Dave True’s 58.16-percent interest
owned at death should be valued as a controlling interest,
contrary to Mr. Kimball’s minority interest treatment under both
the guideline company and net asset value methods. Respondent
contends that if Mr. Kimball’s minority values are accepted by
the Court, a 25-percent control premium should be added to
reflect Dave True’s control at death. Respondent derived the
premium amount from the initial Lax report, which applied a 25-
percent control premium to compute the marketable controlling
value of Belle Fourche, see supra p. 219.
Respondent also argues, as he did with True Oil, see supra
pp. 194-195, that Jean True’s 37.63-percent interest transferred
as of June 30, 1994, was not entitled to a minority discount,
because it represented a significant ownership block that had
swing vote potential.
d. Court’s Analysis
The positions of the parties and the Court’s determinations
of the marketable value of Black Hills Trucking’s total equity at
each of the valuation dates are summarized infra pp. 266-267.
We accept the final Lax report’s controlling equity value on
a net asset value basis of $10,933,730 as of June 3, 1994. We
believe that a hypothetical buyer would consider underlying asset
value in negotiating a purchase price, especially if purchasing a
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