Chancery Assigns Secondary Role to Post-Merger DCF

Business Valuation UpdateVol. 21 No. 5
Legal and Court Case Update
May 2015
8732 Commercial Economic, Sociological, and Educational Research
541720 Research and Development in the Social Sciences and Humanities
dissenting shareholder
fair value, discounted cash flow (DCF), merger, statutory appraisal, synergy, equity risk premium (ERP)

In re Ancestry
2015 Del. Ch. LEXIS 21
January 30, 2015
US
State Court
Delaware
Court of Chancery
William S. Wisialowski (petitioners); Gregg A. Jarrell (company/respondent)
Glasscock

Summary

In an appraisal action, Chancery says merger price stemming from robust sales process is best indicator of value; court’s own DCF valuation “is close to the market,” but problematic projections make it more suitable as a check on the sales-derived price.

See Also

In re Ancestry

In an appraisal action, Chancery says merger price stemming from robust sales process is best indicator of value; court’s own DCF valuation “is close to the market,” but problematic projections make it more suitable as a check on the sales-derived price.