Charron v. Sallyport Global Holdings, Inc.

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December 10, 2014

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purchase price allocation, breach of contract, discount rate, discounted cash flow (DCF), economic damages & lost profits, private equity, guideline company method, enterprise value (MVIC), earnings before interest, taxes, depreciation, amortization (EBITDA), guideline publicly-traded company method, double counting, comparable companies method, company specific risk, cash flow projections, military contractor, operating assets, windfall protection
Charron v. Sallyport Global Holdings, Inc.
2014 U.S. Dist. LEXIS 170964
US
Federal Court
New York
United States District Court
Jeffrey Risius (plaintiff); none (defendants)
Pauley III

Summary

In a buyout case, the court finds that, in reselling company, defendants undervalued rollover equity interest by double counting risks specific to the company in order to avoid triggering windfall provision in prior sales agreement favorable to plaintiff.
Charron v. Sallyport Global Holdings, Inc.
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See Also

High Company-Specific Risk Adjustment Distorts Valuation

Legal and Court Case Update
March 2015

In a buyout case, the court finds that, in reselling company, defendants undervalued rollover equity interest by double counting risks specific to the company in order to avoid triggering windfall provision in prior sales agreement favorable to plaintiff.

This article also appears in:
BVR Guide to Management Projections and Business Valuation: Analysis and Case Law