- 3 -
Table of Contents
FINDINGS OF FACT.............................................5
OPINION.....................................................15
I. Introduction.........................................15
II. Relevant Statutory Provisions........................16
III. Arguments of the Parties.............................18
IV. Extent of the Rights Assigned........................19
V. Fair Market Value of the Gifted Interest.............25
A. Introduction.....................................25
1. General Principles............................25
2. Expert Opinions...............................26
a. In General....................................26
b. Petitioners’ Expert...........................27
c. Respondent’s Expert...........................28
B. Value of Underlying Assets.......................28
C. Minority Interest (Lack of Control) Discount.....29
1. Introduction..................................29
2. Discount Factors by Asset Class...............30
a. Equity Portfolio..............................30
(1) Measurement Date.............................31
(2) Sample Funds.................................31
(3) Representative Discount Within the Range
of Sample Fund Discounts...................34
(4) Summary......................................36
b. Municipal Bond Portfolio......................37
(1) Measurement Date.............................37
(2) Sample Funds.................................37
(3) Representative Discount Within the Range
of Sample Fund Discounts...................38
(4) Summary......................................40
c. Real Estate Partnerships......................41
(1) The Appropriate Comparables..................41
(2) Determining the Discount Factor..............43
d. Direct Real Estate Holdings...................45
e. Oil and Gas Interests.........................46
3. Determination of the Minority
Interest Discount............................46
D. Marketability Discount...........................46
1. Introduction..................................46
2. Traditional Approaches to Measuring
the Discount.................................47
a. In General....................................47
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011