Chancery Relies on ‘Simple and Powerful’ DCF for Fair Value

BVLaw
Court Case Digests
August 11, 2016
7371 Computer Programming Services
541511 Custom Computer Programming Services
dissenting shareholder
expert testimony, fair value, size premium, weighted average cost of capital (WACC), discounted cash flow (DCF), merger, statutory appraisal, reliability, projections, valuation methods, capital asset pricing model (CAPM), guideline companies, precedent transactions analysis

In re ISN Software Corp. Appraisal Litig.
2016 Del. Ch. LEXIS 125
US
State Court
Delaware
Court of Chancery of Delaware
Bruce B. Bingham (petitioner); David G. Clarke (petitioner); Daniel Beaulne (respondent)
Glasscock III

Summary

Chancery finds gap separating fair value determinations of three valuation experts in a merger involving a privately held company “alarmingly” wide; court says only the DCF, “a simple and powerful concept,” achieves a reliable indicator of fair value.

See Also

In re ISN Software Corp. Appraisal Litig.

Chancery finds gap separating fair value determinations of three valuation experts in a merger involving a privately held company “alarmingly” wide; court says only the DCF, “a simple and powerful concept,” achieves a reliable indicator of fair value.

Chancery Relies on ‘Simple and Powerful’ DCF for Fair Value

Chancery finds gap separating fair value determinations of three valuation experts in a merger involving a privately held company “alarmingly” wide; court says only the DCF, “a simple and powerful concept,” achieves a reliable indicator of fair value.