Another ‘Must-Read’ Decision From Del. Chancery on the DCF, Discount Rate, and More

Business Valuation UpdateVol. 18 No. 10
Legal and Court Case Update
October 2012
5734 Computer and Computer Software Stores
443142 Electronics Stores
dissenting shareholder

In re: Appraisal of The Orchard Enterprises, Inc.
2012 Del. Ch. LEXIS 165
July 18, 2012
US
State Court
Delaware
Court of Chancery
Timothy Meinhart (shareholders/petitioners); Robert Fresnak (company/respondent)
Strine

Summary

Delaware Chancery Court confirms its preference for the DCF approach in a statutory appraisal action as well as the CAPM for calculating the discount rate and the supply-side ERP, but rejects an adjustment to the size premium to account for the latter.

See Also

In re: Appraisal of The Orchard Enterprises, Inc.

Delaware Chancery Court confirms its preference for the DCF approach in a statutory appraisal action as well as the CAPM for calculating the discount rate and the supply-side ERP, but rejects an adjustment to the size premium to account for the latter.