-40-
certain sales of Kohler stock, transactions in the industry
involving acquisitions of businesses with control premiums, and
published benchmark data.
Mr. Grabowski then adjusted the value he determined for the
adjusted discounted dividend method to reflect the discounts for
lack of marketability and lack of control to determine that the
fair market value of the estate’s Kohler stock on the alternate
valuation date was $63,385,000.
3. Analysis
We are impressed by the valuation methodologies and
conclusions of Mr. Schweihs and Mr. Grabowski. Both are
certified appraisers who spent sufficient time with the company
and management to understand the Kohler business. They used the
correct projection to value the business, the realistic and
accurate management plan, as a result of their understanding of
Kohler. They were also aware that the primary return a
shareholder could expect from owning Kohler stock was from
periodic dividends, and both made dividend methods an essential
component of their analyses.
We find that the estate’s experts have provided thoughtful,
credible valuations strongly supporting the value the estate
reported on its tax return. We also find that the estate’s
experts’ appraisals are more thorough and consistent with
traditional appraisal methodologies for closely held companies
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