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Guideline company NAV method
method nonmarketable
Valuation nonmarketable minority value of
date minority value of subject interest
subject interest
June 4, $1,904,000 $3,147,733
1994
June 30, $1,232,149 $2,036,609
1994
Mr. Kimball then applied a 30-percent weight to the
guideline company method valuation conclusions and a 70-percent
weight to the NAV method conclusions, resulting in final
nonmarketable minority values (rounded) for the subject interests
of $2,775,000 as of June 4, 1994, and $1,795,000 as of June 30,
1994.
b. Initial and Final Lax Reports
As previously stated, the initial Lax report concluded that
a 50-percent marketability discount was appropriate even for a
controlling interest in a company because of the substantial time
and expense required to sell an interest in the absence of an
established market.
However, the final Lax report applied no marketability
discounts to Dave True’s 58.16-percent interest in Black Hills
Trucking for the reasons described in the Belle Fourche section
of this opinion. See supra p. 235.
c. Respondent’s Position
Respondent relied on Mr. Lax’s final conclusions to argue
that a marketability discount would not apply to Dave True’s
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