- 17 -
percent minority interest discount and a 40-percent lack of
marketability discount.
2. Respondent’s Expert
Respondent’s expert, William C. Herber, is an associate
member (candidate) of the American Society of Appraisers and a
member of the Institute of Business Appraisers, Inc. Mr. Herber
prepares valuations and market analyses of real estate, business
enterprises, and intangible property rights. He has worked in
the valuation field since approximately 1985. Mr. Herber
determined that, as of September 26, 1997, the fair market value
of 100 percent of the shares of RBI stock before consideration of
any discounts was $26,500,000. Mr. Herber determined an $860,000
($262.52 per share) value for decedent’s shares of RBI stock. In
determining this value, Mr. Herber allowed a 15-percent minority
interest discount and a 25-percent discount for lack of
marketability.
The experts agree to a considerable extent on the valuation
of RBI stock. Indeed, the aggregate values the experts
determined are relatively close. The greatest difference in the
experts’ respective positions relates to the lack of
marketability discount.
D. Pre-Discount Aggregate Value of RBI Stock
1. Income Approach
Both experts used an income approach to value RBI stock and
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011