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

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.