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category. In any event, Godfrey’s financial picture is such that
we would assign no discount for that aspect.
Ability to control is the fourth category, and Mr. Dorman
assigns a median discount of 10 in an arithmetic progression by
5, ranging from 0 to 20. His reasoning is that the 187.5 shares
“represents 20 percent of the outstanding common stock, and is
therefore the second largest holding out of approximately twenty
shareholders.” He concludes that the investor would not have
control but “would enjoy swing power, and have a strong voice in
the day-to-day operations and decision making of the company.”
We agree with Mr. Dorman’s use of 10 discount points for lack of
ability to control.
In the fifth category, which concerns restrictions on
transfer and anticipated holding period, Mr. Dorman selected a
median 8 discount points in an arithmetic progression by 3,
ranging from 2 to 14. His conclusion is based on a holding
period of 5 years or more. Mr. Dorman stated that “To the best
of * * * [his] knowledge at the present time, there is no
likelihood that Godfrey * * * will be sold within the foreseeable
future.” We agree that there would be restrictions and possible
delay in a sale of an interest in a family-owned entity as
opposed to a publicly traded stock. The record before us,
however, does not reflect that the holding period would be
extended for 5 years or more, or that there are any particular
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