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their votes is speculative. We conclude that no additional
discount is warranted for lack of voting power.
b. Minority Interest Discount for Nonoperating Assets
AE and Empire estimated minority interest discounts of 15
percent for nonoperating assets.15 Petitioner does not dispute
the appropriateness of a minority interest discount of 15 percent
for nonoperating assets.
c. Minority Interest Discount for Operating Assets
AE applied a 20-percent minority interest discount for
operating assets.16 Petitioner contends that amount is too low
because AE computed it using a formula based on a control
premium, and, in estimating the control premium, AE adjusted for
excessive executive compensation. We disagree. There is no
indication that AE based its selection of the control premium on
excessive executive compensation.
5. Discount for Lack of Marketability
Each expert concludes that some discount for lack of
marketability is appropriate because there was no ready market
for DGA stock on the valuation dates.
15 MPI did not use a separate minority interest discount
for nonoperating assets because MPI used a net asset value
approach to value a minority interest and because MPI’s method
assumed that the DGA stock at issue was for a minority interest.
16 MPI did not use a minority interest discount for
operating assets because MPI’s method assumed that the DGA stock
at issue was for a minority interest.
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