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alternate valuation date was $47.010 million. Mr. Schweihs used
a similar analysis to value the pre-reorganization shares on the
date of Frederic’s death, 6 months earlier, and determined the
fair market value of those shares on the date of Frederic’s death
was $50.115 million.
2. Mr. Grabowski’s Valuation
Mr. Grabowski was another expert who prepared an appraisal
report and testified for the estate. He has been valuing
companies since 1974, first with S&P Corporate Value Consulting
and since September 2005, as a managing director with Duff &
Phelps. He is a member of the ASA and is an accredited senior
appraiser with the ASA in business valuation. He has taught
finance and valuation courses at Loyola University, taught
classes for the ASA, and teaches a class on cost of capital. The
majority of his work is valuation services in nonlitigation
settings, and he has valued several businesses similar to Kohler,
including plumbing fixture businesses and closely held companies.
Mr. Grabowski spent 3-1/2 days at the company and
interviewed 12 employees, spending considerable time with 6 of
them, including Herbert (the President and Chairman of the Board)
and Natalie (the General Counsel). Mr. Grabowski also reviewed
numerous documents and considered general economic conditions and
the industries in which Kohler operates.
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