Court Relies on DCF to Derive Value of ‘Sui Generis’ Company

Business Valuation UpdateVol. 20 No. 12
Legal and Court Case Update
December 2014
2086 Bottled and Canned Soft Drinks and Carbonated Waters
312111 Soft Drink Manufacturing
judicial dissolution
buyout, comparable companies analysis, discount for lack of marketability (DLOM), discounted cash flow (DCF), synergy, terminal value, comparable transactions method, revenue forecasts, fair value proceeding

Ferolito v. AriZona Beverages USA LLC
2014 N.Y. Misc. LEXIS 4709
October 14, 2014
US
State Court
New York
New York Supreme Court (Trial Court)
Z. Christopher Mercer, Christopher Stradling (plaintiff); Richard S. Ruback, Shannon Pratt (defendant)
Driscoll

Summary

NY court rejects comparable analyses to value “truly incomparable” beverage company and relies solely on DCF; court says the fact that expressions of interest to buy the company never became bona fide offers indicates liquidity risk and supports 25% DLOM.

See Also

Ferolito v. AriZona Beverages USA LLC

NY court rejects comparable analyses to value “truly incomparable” beverage company and relies solely on DCF; court says the fact that expressions of interest to buy the company never became bona fide offers indicates liquidity risk and supports 25% DLOM.