Actual Transaction Is ‘Gold Standard’ of Valuation, 7th Circuit Says

Business Valuation UpdateVol. 18 No. 7
Legal and Court Case Update
July 2012
5812 Eating and Drinking Places
contract

Malik v. Falcon Holdings, LLC
2012 U.S. App. LEXIS 5336
March 14, 2012
US
Federal Court
7th Circuit
United States Court of Appeals
none
Easterbrook

Summary

7th Circuit says evidence of actual sales transaction concerning the subject company is the “gold standard” of valuation, but finds problems with the plaintiffs’ claims base on a promise to convey 50% of a company’s equity value following an LBO.

See Also

Malik v. Falcon Holdings, LLC

7th Circuit says evidence of actual sales transaction concerning the subject company is the “gold standard” of valuation, but finds problems with the plaintiffs’ claims base on a promise to convey 50% of a company’s equity value following an LBO.