Court Hitches DLOM Application to Probability of Sale

Business Valuation UpdateVol. 20 No. 12
Legal and Court Case Update
December 2014

Access the Full Article

This article is available with a subscription to any of these products:
Already a subscriber?  Login
This article is also available for purchase. (2,040 words)   Add to Cart >>
Need help? Contact us:
1-503-479-8200 ext 2 or sales@bvresources.com
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
Supreme 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)

Full Text of Court Cases
October 6, 2014

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.