Regarding last week’s report in BVWire on the long-lasting Wisniewski v. Walsh case, Michael Meisel, an attorney on the team litigating the case on behalf of the buying shareholders, notes that, in addition to the 25% DLOM the Appellate Division of the Superior Court of New Jersey approved in its most recent decision, it earlier (in its 2013 decision) had approved a 15% key person discount to account for the unique contribution of the late board chairman (Frank Walsh) to the company’s success. This brings the discount rate to 40%—a favorable outcome for the buying shareholders.
A discussion of Wisniewski v. Walsh, 2015 N.J. Super. Unpub. LEXIS 3001 (Dec. 24, 2015) (Wisniewski II), will appear in the March edition of Business Valuation Update; the court’s opinion will be available soon at BVLaw. A digest of the prior ruling, Wisniewski v. Walsh, 2013 N.J. Super. Unpub. LEXIS 724, and the court’s opinion are available at BVLaw.
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