NY’s Unfair Application of Shareholder-Level Marketability Discounts

Business Valuation UpdateVol. 22 No. 1
January 2016
Gilbert E. Matthews, MBA, CFA
Michelle Patterson, J.D., Ph.D.


The statutory standard of value in dissenting shareholder cases in most states is “fair value.” New York and 47 other states use the “fair value” standard in appraisals. As a valuation measure, most states interpret fair value as the shareholder’s pro ra ...