Herbert V. Kohler, Jr., et al. - Page 31

                                        -31-                                          
          transactions in companies that had sufficient similarity to                 
          Kohler, Dr. Hakala found transactions he thought were comparable            
          and then applied the ratios he found in those transactions to               
          value the Kohler stock.                                                     
               Once Dr. Hakala determined the values under the transaction            
          method and the guideline company method, Dr. Hakala decided to              
          weight the guideline company approach 80 percent and the                    
          transaction method 20 percent.  Dr. Hakala thought the guideline            
          company method was more reliable, and there were not very many              
          comparable transactions that could be used in the transaction               
          method.                                                                     
               After Dr. Hakala had weighted the values he found under each           
          approach, he averaged the approaches and considered whether a               
          discount for lack of marketability should be applied.  He                   
          concluded a 25-percent discount was appropriate.                            
               Including his adjustment for his $11 million error, Dr.                
          Hakala determined that the Kohler stock held by the estate was              
          worth $156 million on the alternate valuation date.                         


               11(...continued)                                                       
          information and market prices of publicly traded comparable                 
          companies and compares that financial information with financial            
          information of the corporation to be valued to project the price            
          that shares of the corporation to be valued would sell for if the           
          corporation to be valued were publicly traded.  The transaction             
          method is similar to the guideline company method except that               
          comparable companies that have recently been acquired are                   
          selected and the financial information is compared to the price             
          obtained in the transaction, rather than the market price.                  





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