Court Rejects DCF Approach Where Inputs Are 'Untethered to Reality'

Business Valuation UpdateVol. 12 No. 1
Legal and Court Case Update
January 2006

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shareholder dissent/oppression
fair value, appraisal action, discounted cash flow (DCF), fair market value (FMV), comparable companies method, precedent transactions analysis
Finkelstein v. Liberty Digital, Inc.
2005 Del. Ch. LEXIS 53
April 25, 2005
US
State Court
Delaware
Court of Chancery
Douglas J. Hoffman, Jessica Zeldin, John D. Hendershot, Kevin G. Abrams, Michael C. Spencer, Norman M. Monhait, Philippe Y. Blanchard, Richard P. Rollo, Thomas A. Beck
Steven P. Feinstein (for dissenters)<br>Marc H. Katz (for Liberty Digital)
Strine

Summary

In this appraisal action, the only valuation issue was the value of only one of the merged company’s assets.

See Also

Finkelstein v. Liberty Digital, Inc.

Full Text of Court Cases
April 25, 2005

In this appraisal action, the only valuation issue was the value of only one of the merged company's assets.