Court Hitches DLOM Application to Probability of Sale

Business Valuation UpdateVol. 20 No. 12
Legal and Court Case Update
December 2014
5099 Durable Goods, NEC
423990 Other Miscellaneous Durable Goods Merchant Wholesalers
judicial dissolution
control premium, expert testimony, closely held corporation, discount for lack of marketability (DLOM), minority discount, statutory appraisal, textile, s corporation, inventory, lost corporate opportunity, new york blc, risk management association

Zelouf International Corp. v. Zelouf (I)
2014 N.Y. Misc. LEXIS 4341
October 6, 2014
US
State Court
New York
New York Supreme Court (Trial Court)
Kevin Vannucci, McGladrey (joint—neutral—appraiser); James T. Ashe, Marcum LLP, Anthony Saunders (fair value appraisal), Elliot A. Lesser (forensic accountant) (all for respondent); unknown (plaintiff)
Kornreich

Summary

In fair value appraisal proceeding, New York court finds DLOM inappropriate given low probability of sale of family business and finds assumption of hypothetical impediments to sale irrelevant; New York law does not mandate DLOM in every circumstance.

See Also

Zelouf International Corp. v. Zelouf (I)

In fair value appraisal proceeding, New York court finds DLOM inappropriate given low probability of sale of family business and finds assumption of hypothetical impediments to sale irrelevant; New York law does not mandate DLOM in every circumstance.