Court of Chancery Rules Unaffected Market Price Is Best Evidence of Fair Value

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Court Case Digests
July 19, 2019

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6719 Offices of Holding Companies, NEC
551112 Offices of Other Holding Companies
shareholder dissent/oppression
expert testimony, size premium, weighted average cost of capital (WACC), cash flow, discounted cash flow (DCF), event study, statutory appraisal, multiple, synergy, equity risk premium (ERP), market value, comparable companies method, efficient market, unaffected market price
In re Appraisal of Jarden Corp. (I)
2019 Del. Ch. LEXIS 271
US
State Court
Delaware
Court of Chancery
Dr. Mark Zmijewski (petitioners); Dr. Glenn Hubbard (company/respondents)
Slights

Summary

Court finds record shows unaffected market price is best evidence of fair value; court says company expert’s efficient market analysis and event study provide strong support for use of market price; court’s own DCF analysis generates value close to market price, thus corroborating market price.

See Also

In re Appraisal of Jarden Corp. (I)

Full Text of Court Cases
July 19, 2019

Court finds record shows unaffected market price is best evidence of fair value; court says company expert’s efficient market analysis and event study provide strong support for use of market price; court’s own DCF analysis generates value close to market price, thus corroborating market price.

This article also appears in:
Business Valuation UpdateVol. 25 No. 9