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Mr. Hitchner estimated the income-based value for BCC as
ranging from $4,803,513 to $6,403,513, without indicating where
in the range he believed the income-based value fell. He also
provided a range of values under two different asset-based
approaches: The adjusted book value and modified adjusted book
value approaches. The values provided for the adjusted book
value approach were $8,891,024 and $8,478,254 for the fiscal
years ended 1997 and 1998, respectively. The values provided for
the modified adjusted book value approach were $7,596,838 and
$7,052,766 for the fiscal years ended 1997 and 1998,
respectively. As with the income-based approach, Mr. Hitchner
did not indicate where in the ranges he believed the asset-based
value fell. To derive his final value for BCC, Mr. Hitchner
indicated that he gave the most weight to the modified adjusted
book value approach, and equal but lesser weight to the income
and the adjusted book value approaches. He did not disclose the
precise weighting for each approach. Mr. Hitchner’s “concluded”
value for BCC was $7 million.
Upon a careful review of the entire record, we are persuaded
that, exclusive of their respective treatments of the proceeds
from decedent’s life insurance, each expert’s analysis contains a
miscalculation of sufficient magnitude that it requires
adjustment in reaching a final value. With respect to Mr. Fodor,
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