Zelouf Court Reasserts Its Objection to DLOM

Business Valuation UpdateVol. 21 No. 2
Legal and Court Case Update
February 2015

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5099 Durable Goods, NEC
423990 Other Miscellaneous Durable Goods Merchant Wholesalers
judicial dissolution
fair value, closely held corporation, discount for lack of marketability (DLOM), freeze-out merger, minority discount, minority shareholder, statutory appraisal, textile, controlling shareholder, liquidity, new york blc
Zelouf International Corp. v. Zelouf (II)
2014 N.Y. Misc. LEXIS 5595
December 22, 2014
US
State Court
New York
Supreme Court
Kevin Vannucci, McGladrey (neutral appraiser); James T. Ashe, Marcum LLP, Anthony Saunders (fair value appraisal), Elliot A. Lesser (forensic accountant) (all for respondent); unknown (plaintiff/petitioner)
Kornreich

Summary

New York court rejects majority owners’ post-trial objection to prior ruling against DLOM based on unlikelihood of sale of the business; court is guided by fairness, noting “a DLOM here would be the economic equivalent of imposing a minority discount.”

See Also

Zelouf International Corp. v. Zelouf (II)

Full Text of Court Cases
December 22, 2014

New York court rejects majority owners’ post-trial objection to prior ruling against DLOM based on unlikelihood of sale of the business; court is guided by fairness, noting “a DLOM here would be the economic equivalent of imposing a minority discount.”