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swing vote argument regarding Jean True’s 37.63-percent interest
transferred as of June 30, 1994, for the reasons stated in our
analysis of True Oil, see supra pp. 201-202, and we find that a
minority discount is warranted. We apply Mr. Kimball’s proposed
10-percent lack-of-control discount to Mr. Lax’s net asset value
to arrive at a marketable minority value as of June 30, 1994, of
$9,840,357 for the interest sold by Jean True to her sons.
A summary of our determinations regarding marketable entity
values for Black Hills Trucking follows:
Net asset value Net asset value
Valuation method marketable method marketable
date controlling value minority value
June 4, 1994 $10,933,730 N/A
June 30, 1994 N/A $9,840,357
2. Marketability Discounts
a. Kimball Report
Based on the reasoning described in the Belle Fourche
section of this opinion, see supra pp. 233-234, Mr. Kimball
concluded that the subject interests in Black Hills Trucking were
not readily marketable, and he applied 45-percent marketability
discounts to the marketable minority values as of June 4 and June
30, 1994.
The table below summarizes the nonmarketable minority values
of the subject interests in Black Hills Trucking calculated using
the guideline company and NAV methods.
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