Estate of George C. Blount, Deceased, Fred B. Aftergut, Executor - Page 53

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          approximately $1.9 million of nonoperating assets (ignoring                 
          insurance proceeds the company was due to receive on decedent’s             
          death).  Had Mr. Grizzle valued all of BCC’s assets, and not just           
          the operating assets, he would have valued BCC at over $6                   
          million, as opposed to the $4.5 million value he calculated using           
          a multiple of four times adjusted cashflow.  With this adjustment           
          alone, Mr. Grizzle’s estimation of the fair market value of                 
          decedent’s shares would rise from approximately $3.8 million to             
          over $5 million, thus undermining any claim that the $4 million             
          purchase price in the Modified 1981 Agreement was a fair market             
          value price.28                                                              
               In light of these concerns, we assign no weight to Mr.                 
          Grizzle’s testimony that the $4 million purchase price set forth            

               28 In addition, we are unpersuaded regarding Mr. Grizzle’s             
          estimation of BCC’s fair market value because his purportedly               
          comparable companies differed significantly from BCC.  For                  
          instance, the cellular tower construction company he used as a              
          comparable was 2 years old with minimal cash and assets.  It was            
          in a new industry that was rapidly evolving.  Moreover, it                  
          depended on three customers for 86 percent of its contract                  
          revenues, with one customer accounting for 48 percent of those              
          revenues.  This is a far cry from BCC, which had been in business           
          for more than 50 years, operated in a stable industry, obtained             
          business from numerous sources, and had significant cash and                
          assets.  In two cases, Mr. Grizzle relied on financial data                 
          generated after the companies were sold to determine the cashflow           
          multiple implicit in the sale prices.  In each case, the use of             
          this data served to decrease the multiple he determined.  Thus,             
          we are not persuaded by Mr. Grizzle’s conclusion that BCC should            
          be valued using the same multiple of cashflow reflected in the              
          sales of these companies or that the multiples he derived are               

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