High Company-Specific Risk Adjustment Distorts Valuation

Business Valuation UpdateVol. 21 No. 3
Legal and Court Case Update
March 2015

Access the Full Article

This article is available with a subscription to any of these products:
Already a subscriber?  Login
This article is also available for purchase. (1,840 words)   Add to Cart >>
Need help? Contact us:
1-503-479-8200 ext 2 or sales@bvresources.com
8748 Business Consulting Services, NEC
541618 Other Management Consulting Services
contract
purchase price allocation, breach of contract, discount rate, discounted cash flow (DCF), economic damages & lost profits, private equity, guideline company method, enterprise value (MVIC), earnings before interest, taxes, depreciation, amortization (EBITDA), guideline publicly-traded company method, double counting, comparable companies method, company specific risk, cash flow projections, military contractor, operating assets, windfall protection
Charron v. Sallyport Global Holdings, Inc.
2014 U.S. Dist. LEXIS 170964
December 10, 2014
US
Federal Court
New York
United States District Court
Jeffrey Risius (plaintiff); none (defendants)
Pauley III

Summary

In a buyout case, the court finds that, in reselling company, defendants undervalued rollover equity interest by double counting risks specific to the company in order to avoid triggering windfall provision in prior sales agreement favorable to plaintiff.

See Also

Charron v. Sallyport Global Holdings, Inc.

Full Text of Court Cases
December 10, 2014

In a buyout case, the court finds that, in reselling company, defendants undervalued rollover equity interest by double counting risks specific to the company in order to avoid triggering windfall provision in prior sales agreement favorable to plaintiff.