APPELLATE COURT OF ILLINOIS, FIRST DISTRICT, THIRD DIVISION
Petitioner-Appellant, and WILLIAM HENRY FOLEY,
516 N.E.2d 455, 163 Ill. App. 3d 1, 114 Ill. Dec. 300 1987.IL.1571
Appeal from the Circuit Court of Cook County; the Hon. Herman Knell, Judge, presiding.
JUSTICE FREEMAN delivered the opinion of the court. RIZZI and WHITE, JJ., concur.
DECISION OF THE COURT DELIVERED BY THE HONORABLE JUDGE FREEMAN
The marriage of the parties, petitioner-appellant Mary Catherine Foley and respondent-appellee William Henry Foley, was dissolved by a judgment entered in the circuit court of Cook County on December 20, 1984, at the close of the first part of a bifurcated trial. On October 11, 1985, the court entered a supplemental judgment providing for, among other things, a distribution of marital property. This appeal arises out of the supplemental judgment.
By the terms of the supplemental judgment, respondent was awarded as a portion of his share of the marital property the family business known as Electro-Mechanical Devices . Petitioner appeals from the trial court's finding that the value of EMD was $225,000. Petitioner contends on appeal that the trial court erred in basing its finding on the opinion of respondent's expert where the expert failed to include a value for the goodwill of the enterprise.
For the reasons stated below, we affirm the judgment of the circuit court.
The evidence at trial indicated the following. The parties were married on September 5, 1959. Five children were born of the marriage. Respondent, along with Harold Dobrikin and Edward Gilman, began the EMD business in 1968. EMD manufactures electronic wire harnesses for the automotive industry. EMD was the parties' major source of income during the marriage. As of April 29, 1985, respondent owned 90% of the stock of EMD and the Foley children owned 10%. The last sale of stock of EMD was in 1981, when respondent purchased the stock held by his partner, Harold Dobrikin. Gilman had sold his stock in the company in 1978.
Robert Greisman, a certified public accountant and attorney, testified as petitioner's expert. Greisman opined that the value of EMD was between $1,013,000 and $1,219,000. Respondent's expert was Charles Schaeffer, a chartered financial analyst and a vice-president in the trust department of Continental Illinois National Bank. Schaeffer testified that EMD had a value of $225,000.
Greisman, petitioner's expert, testified that he arrived at the valuation of $1,016,000 by using a capitalization of earnings method and a goodwill method, and averaging the two calculated figures. Under the capitalization of earnings method Greisman found a valuation of $1,013,600. Under the goodwill method Greisman calculated a valuation of $1,219,000.
Schaeffer, respondent's expert, considered a number of factors in valuating EMD. Schaeffer specifically rejected the valuation methods utilized by petitioner's expert. Further, Schaeffer ...