Delaware Chancery Confirms Preference for DCF, Distrust of Company-Specific Premium

Business Valuation UpdateVol. 16 No. 3
Legal and Court Case Update
March 2010
5182 Wine and Distilled Alcoholic Beverages
424820 Wine and Distilled Alcoholic Beverage Merchant Wholesalers
shareholder dissent/oppression

In re Sunbelt Beverage Corp. Shareholder Litigation
2009 WL 92519 (Del. Ch.)
January 5, 2010
US
State Court
Delaware
Court of Chancery
Blake Rohrbacher, Howard Graff, Jesse A Finkelstein, Judith R Cohen, Preston H Longino, S Mark Hurd, Samuel Taylor Hirzel, Srinivas M Raju
Richerd Ruback (plaintiffs); Robert Reilly (defendants)
Chandler

Summary

Delaware Chancery court confirms its preference for a DCF analysis, discredits company-specific risk premium, discusses circular logic behind selection of small-firm risk premium, and rejects value adjustment for post-merger conversion to an S Corp.

See Also

In re Sunbelt Beverage Corp. Shareholder Litigation

Delaware Chancery court confirms its preference for a DCF analysis, discredits company-specific risk premium, discusses circular logic behind selection of small-firm risk premium, and rejects value adjustment for post-merger conversion to an S Corp.