Extraordinary Circumstances Warrant Marketability Discount in Buyout

Business Valuation UpdateVol. 6 No. 10
Legal and Court Case Update
October 2000
4899 Communications Services, NEC
517919 All Other Telecommunications
judicial dissolution
buy-sell agreement, fair value, breach of fiduciary duty, discount for lack of marketability (DLOM), going concern, minority shareholder

Advanced Communication Design, Inc. v. Follett (II)
615 N.W. 2d 285, 2000 Minn. LEXIS 417
August 3, 2000
State Court
Supreme Court


In November 1999, the Minnesota Court of Appeals ruled, in a case of first impression in Minnesota, that a marketability discount should not be applied to determine the fair value of Brian Follett's one-third interest in Advanced Communication Design Inc. (ACD).

See Also

Advanced Communication Design, Inc. v. Follett (II)

At issue is whether, in a court-ordered buy-out of a minority shareholder pursuant to Minn. Stat. § 302A.751 (1998), a marketability discount should be applied to the value of the shares.