The Charles Schwab Corporation and Subsidiaries - Page 47

                                       - 47 -                                         
               On the other hand, the approach petitioner’s expert used in            
          his report is more apropos of the circumstances we consider and             
          was contemporaneously used by petitioner in connection with its             
          evaluation and acquisition of Rose and reporting of the                     
          transaction.  In addition, Mr. Knoblick’s methodology was based             
          on brokerage industry experience.  Under those circumstances, we            
          find Mr. Knoblick’s report to be more appropriate and reliable.             
          We were also influenced by the fact that Mr. Knoblick’s approach            
          and report do not appear to inflate or reach merely to favor                
          petitioner’s position.  Conversely, Mr. Shepard’s approach                  
          appears to ignore the realities we consider and inappropriately             
          attempts to focus on a going-concern value to establish value for           
          assets which petitioner (as well as any other “willing buyer”               
          would have) abandoned.                                                      
               Frequently, valuation cases engender intermediate results              
          where the opinion of each party’s expert is brought to bear.                
          This instance, however, is one where full faith and credit should           
          be given to the expertise proffered by one of the parties.  We              
          accept Mr. Knoblick’s report and hold for petitioner on the                 
          question of value.  In a like manner, the reliability of the                
          results reached by Messrs. Shepard and Knoblick is repeated with            
          respect to the valuing of the remaining customer accounts and               
          assets.                                                                     








Page:  Previous  37  38  39  40  41  42  43  44  45  46  47  48  49  50  51  52  53  54  55  56  Next

Last modified: May 25, 2011