Marketability Discount OK in Oppression Suit

Business Valuation UpdateVol. 5 No. 8
Legal and Court Case Update
August 1999
5169 Chemicals and Allied Products, NEC
424690 Other Chemical and Allied Products Merchant Wholesalers
judicial dissolution
fair value

Balsamides v. Protameen Chemicals
160 N.J. 352, 734 A.2d 721, 1999 N.J. LEXIS 836
July 14, 1999
US
State Court
New Jersey
Supreme Court
Thomas J. Hoberman, CPA (for Balsamides)<br>Robert E. Ott, CFA (for Perle)
Garibaldi

Summary

In this case, decided the same day as Lawson Mardon Wheaton Inc. v. Smith, the New Jersey Supreme Court held that a marketability discount should be applied when determining the fair value of stock for purposes of a court-ordered buyout in a shareholder oppression suit.

See Also

Balsamides v. Protameen Chemicals

At issue is whether in this judicially ordered buy-out the trial court should have applied a "marketability discount" to determine the "fair value" of Perle's shares, a fifty percent shareholder of Protameen Chemicals.