Delaware Chancery Court Endorses DCF Model; Forecast Assumptions Must Be Likely Scenarios

Business Valuation UpdateVol. 3 No. 10
Legal and Court Case Update
October 1997

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shareholder dissent/oppression
fair value, discounted cash flow (DCF), dissenting shareholder, terminal value
Grimes v. Vitalink Communications
1997 Del. Ch. LEXIS 124
August 26, 1997
US
State Court
Delaware
Court of Chancery
William Becklean (for petitioner) Kevin Dages (for respondent)
Chandler

Summary

In a dissent to a typical statutory merger of a company called Vitalink, dissenters owning 201,900 shares claim a fair value of $13.32 per share versus respondent's $8.50 per share.

See Also

Grimes v. Vitalink Communications

Full Text of Court Cases
August 26, 1997

At issue is the fair value of petitioners' Vitalink shares based on corporation's future cash flows.