Why Del. Chancery rejects merger price in 'Dell' statutory appraisal action
It decided to give no weight to the final merger price—$13.75 per share, and a special $0.13 dividend issued to all shareholders—but rely exclusively on its own post-transaction DCF analysis to determine the fair value of the company. In so doing, the court deviated from a number of Chancery decisions—several issued in 2015—that found the deal price was the most reliable indicator of the company’s fair value.
Additional evidence of size difference in market multiples
In my last two editorial columns, I presented evidence that smaller companies tend to sell at lower valuation multiples than do larger companies. The accompanying table is further corroboration of tha ...
Fair market value, the willing buyer, and lessons from the Ninth Circuit
Last issue we discussed the characteristics of the willing buyer. This is a follow-up to that article. Who makes up the pool of potential willing buyers? That concept as it relates to a minority in ...