News Tag: market approach


Court rejects experts' fair value determinations in Minnesota buyout case

The plaintiff is the “prevailing party,” a Minnesota district court recently decided, allowing the minority owner of a well-known family business to sell her share for over $40 million. The valuation trial featured high-caliber experts who disagreed about every input and assumption underlying their discounted cash flow analyses. Read more >>

Tennessee dissenters claim Delaware block method is passé

The use of the Delaware block method in Tennessee recently came under attack in a case involving a closely held Nashville, Tenn.-based media company whose controlling shareholders had pursued a squeeze-out merger and later asked the trial court for a judicial appraisal of the dissenting shareholders' interest. Read more >>

Flop film poses unique valuation challenge

A recent bankruptcy-related case in front of the California Court of Appeal raises important questions about how one quantifies the value of a dated piece of art, a film, for which there never was a market in the first place. Read more >>

Chancery relies on income approach to determine fair value in problematic bank merger

In a statutory appraisal action, the Delaware Court of Chancery recently found the deal price did not reflect fair value because the sales process was suboptimal. Certain other methods the parties' experts used also were inadequate to the task, the court said. Read more >>

Valuation of key marital asset demands expert opinion

In a Mississippi divorce, the husband's sole-owned fitness training company was the key asset. An accurate valuation was central to achieving an equitable distribution of property, but the parties did not hire experts or even submit much financial information to the trial court. Read more >>

New Jersey DLOM ruling inches ancient dissenting shareholder suit to conclusion

The parties' most recent fight focused on whether the prevailing expert's DCF analysis embedded a marketability discount to account for illiquidity. If not, the trial court had to decided what the appropriate DLOM rate was. The plaintiff-selling shareholder argued in favor of a zero DLOM, the defendants-buying shareholders presented an expert valuation that specified a 35% DLOM, based on the expert's use of a market approach. Read more >>

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