Kruse v. Synapse Wireless, Inc.

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July 14, 2020

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shareholder dissent/oppression
discount rate, expert testimony, weighted average cost of capital (WACC), cash flow, discounted cash flow (DCF), merger price, statutory appraisal, projections, terminal value, comparable companies method, perpetual growth rate
Kruse v. Synapse Wireless, Inc.
2020 Del. Ch. LEXIS 238
US
State Court
Delaware
Court of Chancery
Athen Sweet (petitioner); Christopher Noe, Ph.D. (company/respondent)
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Summary

In appraisal action arising out of controller’s buyout of minority stockholders, court finds there is no reliable market evidence as to target’s fair value on merger date; none of expert valuations are “wholly reliable,” but one expert’s DCF analysis offers a “proportionately reliable conclusion.”
Kruse v. Synapse Wireless, Inc.
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See Also

Lacking Any Wholly Reliable Indicators of Fair Value, Court Adopts Respondent's DCF Model

Court Case Digests
July 14, 2020

In appraisal action arising out of controller's buyout of minority stockholders, court finds there is no reliable market evidence as to target's fair value on merger date; none of expert valuations are "wholly reliable," but one expert's DCF analysis offers a "proportionately reliable conclusion."

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BVR Guide to Management Projections and Business Valuation: Analysis and Case Law