Management Buyout Fraught With Flawed ESOP Valuations

Business Valuation UpdateVol. 18 No. 11
Legal and Court Case Update
November 2012

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ESOP valuations
Chesemore v. Alliance Holdings, Inc. (I)
2012 U.S. Dist. LEXIS 103731
July 24, 2012
US
Federal Court
Wisconsin
United States District Court
Stout Risius Ross Inc. (ESOP appraisers); Barnes Wendling (fairness opinion); RSM McGladrey Inc. (BV consultant to ESOP trustees); Alpha Investment Consulting LLC (independent advisors to ESOP trustees)
Conley

Summary

Federal district court makes extensive finding regarding breaches of fiduciary duties for ESOP trustees that caused company to enter heavily leveraged buyout despite falling forecasts and flawed valuations marred by manager conflicts of interest.

See Also

Chesemore v. Alliance Holdings, Inc. (I)

Full Text of Court Cases
July 24, 2012

: Federal district court makes extensive finding regarding breaches of fiduciary duties for ESOP trustees that caused company to enter heavily leveraged buyout despite falling forecasts and flawed valuations marred by manager conflicts of interest.