Estate of George C. Blount, Deceased, Fred B. Aftergut, Executor - Page 52

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               In determining BCC’s value, Mr. Grizzle relied solely on an            
          income-based approach.  Mr. Fodor, the estate’s other expert,               
          asserted that 25 percent of BCC’s value should be determined                
          using an asset-based approach.  Mr. Hitchner, respondent’s                  
          expert, asserted that BCC’s value should be calculated by giving            
          significant weight to an asset-based approach.  We are persuaded            
          by their testimony that some weight should be given to an asset             
          approach.  BCC was an asset-rich company, with significantly more           
          cash than similar companies.  Decedent’s shares represented a               
          controlling interest in the company, thus allowing a purchaser to           
          control the retention or disposition of those assets.  Thus, Mr.            
          Grizzle’s reliance on an income-based approach alone, without               
          regard to the company’s assets, raises doubt about his valuation            
               Even if we assume that an income-based approach alone were             
          appropriate here, Mr. Grizzle excluded nonoperating assets from             
          his valuation, on the theory that, in actual transactions,                  
          sellers do not sell nonoperating assets along with the operating            
          assets.  Thus, he envisioned decedent selling BCC’s operating               
          assets only, while retaining its nonoperating assets.  The                  
          purchase price set forth in the Modified 1981 Agreement, however,           
          was for decedent’s interest in BCC’s operating and nonoperating             
          assets.  As discussed infra in Part II.C.3., BCC had                        

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