Estate of George C. Blount, Deceased, Fred B. Aftergut, Executor - Page 19

                                       - 19 -                                         
          concluded that the fair market value for BCC was $4,541,678, and            
          decedent’s 43,080 BCC shares had a fair market value of                     
          $3,778,676 as of the valuation date.                                        
               In valuing BCC, and comparing the multiple implicit in BCC’s           
          price to the multiples implicit in the sale prices of companies             
          he reviewed, Mr. Grizzle did not consider the value of BCC’s                
          nonoperating assets.  He testified that in actual sales such                
          assets are not normally part of the transaction, as the seller              
          usually retains those assets.                                               
               B.   Estate’s Expert Mr. Fodor                                         
               Mr. Fodor is a certified business appraiser.  He is a member           
          of the Institute of Business Appraisers and the Appraisal                   
          Foundation, organizations which he has served in a number of                
          capacities.  Mr. Fodor has published articles and given lectures            
          regarding appraising.  He has performed numerous appraisals for             
          business and litigation support purposes.                                   
               Mr. Fodor relied on a blend of income- and asset-based                 
          valuation approaches to value BCC.  For his income approach, Mr.            
          Fodor used a capitalization of earnings model.  He began by                 
          projecting BCC’s “net free cash flow capacity” for the year                 
          immediately following the valuation date, relying on BCC’s                  
          historical earnings data to do so.  Mr. Fodor adjusted revenues             
          and expenses as he deemed appropriate to reflect earning                    

Page:  Previous  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  Next

Last modified: May 25, 2011