Aruba Networks: Should Appraisals Rely on Unaffected Market Price?

Business Valuation UpdateVol. 24 No. 10
October 2018
Gilbert E. Matthews, MBA, CFA
statutory appraisal action
fair value, discounted cash flow (DCF), dissenting shareholder, statutory appraisal, delaware court of chancery


Delaware appraisal decisions in recent years have effectively endorsed the concept that the price paid in an arm’s-length transaction is “fair value” when there has been a “robust” sales process. This article examines the “troubling” ruling in which the court based its appraisal solely on the unaffected market price.