Herbert V. Kohler, Jr., et al. - Page 35

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          assignment in particular, he was required to review significant             
          information regarding the company and interview Kohler                      
          management.                                                                 
               Mr. Schweihs used the income approach and the market                   
          approach to value the estate’s Kohler stock.  Under the income              
          approach, Mr. Schweihs used not only the DCF method, but also the           
          discounted dividend method and the dividend capitalization                  
          method.  He recognized that the dividend methods were important             
          indicators of value where dividends represent the best, if not              
          the only, opportunity for a minority shareholder to receive a               
          cash return on his or her investment.  Under the market approach,           
          Mr. Schweihs used the capital market method, also known as the              
          guideline company method.  Mr. Schweihs did not use the                     
          transaction method, unlike Dr. Hakala, because he was unable to             
          find transactions in companies sufficiently similar to Kohler               
          where there was adequate information available.                             
               Mr. Schweihs also did not account for prior sale                       
          transactions of Kohler stock in determining the value.  He                  
          determined that the transactions included a premium for being               
          able to be a shareholder in a prominent, privately held company             
          like Kohler, and that this premium could not be quantified.13               

               13We also note that the evidence of the pre-reorganization             
          transactions (including the $135,000 price received by the                  
          dissenting shareholders in the litigation) is not helpful because           
          these transactions involve pre-reorganization stock, which is not           
                                                             (continued...)           





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