Chancery Achieves Fair Value by Blending Three ‘Imperfect Techniques’

BVLaw
Court Case Digests
July 8, 2016

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6141 Personal Credit Institutions
522291 Consumer Lending
shareholder dissent/oppression
expert testimony, fair value, comparable companies analysis, discounted cash flow (DCF), merger, statutory appraisal, multiple, reliability, projections, valuation methods, earnings before interest, taxes, depreciation, amortization (EBITDA)
In re DFC Global Corp.
2016 Del. Ch. LEXIS 103
US
State Court
Delaware
Court of Chancery
Kevin F. Dages (petitioners); Daniel Beaulne (respondent)
Bouchard

Summary

Court says uncertainty about company’s future performance and viability limits reliability of values derived from DCF and multiples-based comparable company analyses as well as deal price; court blends three “imperfect techniques” to determine fair value.

See Also

In re DFC Global Corp.

Full Text of Court Cases
July 8, 2016

Court says uncertainty about company’s future performance and viability limits reliability of values derived from DCF and multiples-based comparable company analyses as well as deal price; court blends three “imperfect techniques” to determine fair value.

Chancery Achieves Fair Value by Blending Three ‘Imperfect Techniques’

BVLaw Case Update
October 2016

Court says uncertainty about company’s future performance and viability limits reliability of values derived from DCF and multiples-based comparable company analyses as well as deal price; court blends three “imperfect techniques” to determine fair value.