Estate of Mildred Green, Deceased, Thomas R. Green, Executor - Page 20

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          selected appropriate multiples for RBI stock.  Mr. Herber                   
          determined a value of $28,500,000 for RBI stock using the                   
          transaction analysis.  In reaching his conclusions, Mr. Herber,             
          unlike Mr. Schroeder, did not consider the effects of any                   
          potential loan impairment.                                                  
                         iii.  Effect of Potential Loan Impairment                    
               In their disagreement over the experts’ transaction                    
          analyses, the parties focus on whether the multiples that the               
          experts selected should reflect the impairment risk of the loan             
          to the Havrillas and the pending bankruptcy of Jefferson/Keeler.8           
          Although Mr. Schroeder considered the potential of a loan                   
          impairment in his report, it is unclear whether or to what extent           
          it depressed his appraisal.9  Accordingly, we are unpersuaded               
          that Mr. Herber’s failure to consider the potential loan                    
          impairment materially undermines his valuation recommendations.             



               8 The difference in the values that the estate’s expert,               
          Gary L. Schroeder, and respondent’s expert, William C. Herber,              
          determined is not solely attributable to differing treatments of            
          the potential loan impairment.  The experts also relied upon                
          different guideline transactions, which resulted in the use of              
          different price/earnings, price/equity, and price/assets ratios.            
          Respondent, however, raises no issues as to the remaining aspects           
          of Mr. Schroeder’s transaction analysis, including his selection            
          of guideline transactions.  Similarly, the estate does not appear           
          to dispute the remaining aspects of Mr. Herber’s transaction                
          analysis.                                                                   
               9 Furthermore, the record reflects that Mr. Schroeder’s                
          knowledge and understanding of the circumstances of the loan                
          impairment were, in key respects, faulty.                                   




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