Chancery Says Solid Sales Process Lends Credibility to Deal Price

Business Valuation UpdateVol. 23 No. 4
BVLaw Case Update
April 2017
8999 Services, NEC
541990 All Other Professional, Scientific, and Technical Services
dissenting shareholder
beta, discount rate, expert testimony, fair value, mergers and acquisitions (M&A), size premium, weighted average cost of capital (WACC), appraisal action, discounted cash flow (DCF), going concern, merger price, synergy, projections, terminal value, valuation date, arm's length

Merion Capital L.P. v. Lender Processing Servs.
2016 Del. Ch. LEXIS 189
December 16, 2016
US
State Court
Delaware
Court of Chancery of Delaware
Prof. Jerry A. Hausman (petitioner); Daniel Fischel (respondent)
Laster

Summary

In appraisal action, Chancery says final merger consideration best represents fair value, noting sales process led to “meaningful price discovery”; court says with DCF too much depends on assumptions; small changes may have outsize impact on value range.

See Also

Chancery Says Solid Sales Process Lends Credibility to Deal Price

In appraisal action, Chancery says final merger consideration best represents fair value, noting sales process led to “meaningful price discovery”; court says with DCF too much depends on assumptions; small changes may have outsize impact on value range.