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M&A Blog #16 – valuation (Discounted Cash Flow)

Francine Way

As I mentioned in my last post, Discounted Cash Flow (DCF) is a valuation method that uses free cash flow projections, a discount rate, and a growth rate to find the present value estimate of a potential investment. Per-share Equity Value = Equity Value / Number of shares outstanding.

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Delaware Supreme Court Reverses And Remands Dell MBO Appraisal Decision, Finding The Trial Court Erroneously Disregarded The Deal Price

Shearman & Sterling

On December 14, 2017, the Delaware Supreme Court, in an opinion by Justice Karen L. per share significantly undervalued the stock of Dell. . ("Dell") by its CEO and founder, Michael Dell, and affiliates of a private equity firm, Silver Lake Partners ("Silver Lake"), at $13.75 In re Appraisal of Dell Inc.,

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Delaware Supreme Court Reverses And Remands Appraisal Award But Rejects Bright-Line Presumption In Favor Of Deal Price

Shearman & Sterling

On August 1, 2017, the Delaware Supreme Court, in an opinion by Chief Justice Leo E. per share significantly undervalued the stock of DFC. per share, 8.4% per share, by giving equal weight to: (1) the deal price, (2) a comparable companies analysis, and (3) a discounted cash flow analysis. Strine, Jr.,

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Delaware Chancery Court Finds No Fiduciary Duty Breach, Notwithstanding Entire Fairness Review, And Determines Appraisal Value To Be Well Below Deal Price

Shearman & Sterling

On July 21, 2017, Vice Chancellor J. per share, notwithstanding that the transaction closed at $5.00 per share, notwithstanding that the transaction closed at $5.00 July 21, 2017). per share value determined by the approach offered by Sprint, even though it amounted to less than half of the $5.00 ACP Master, Ltd.,

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Delaware Supreme Court Reverses And Remands Dell MBO Appraisal Decision, Finding The Trial Court Erroneously Disregarded The Deal Price

Shearman & Sterling

On December 14, 2017, the Delaware Supreme Court, in an opinion by Justice Karen L. per share significantly undervalued the stock of Dell. . ("Dell") by its CEO and founder, Michael Dell, and affiliates of a private equity firm, Silver Lake Partners ("Silver Lake"), at $13.75 In re Appraisal of Dell Inc.,

article thumbnail

Delaware Supreme Court Reverses And Remands Appraisal Award But Rejects Bright-Line Presumption In Favor Of Deal Price

Shearman & Sterling

On August 1, 2017, the Delaware Supreme Court, in an opinion by Chief Justice Leo E. per share significantly undervalued the stock of DFC. per share, 8.4% per share, by giving equal weight to: (1) the deal price, (2) a comparable companies analysis, and (3) a discounted cash flow analysis. Strine, Jr.,

article thumbnail

Delaware Chancery Court Finds No Fiduciary Duty Breach, Notwithstanding Entire Fairness Review, And Determines Appraisal Value To Be Well Below Deal Price

Shearman & Sterling

On July 21, 2017, Vice Chancellor J. per share, notwithstanding that the transaction closed at $5.00 per share, notwithstanding that the transaction closed at $5.00 July 21, 2017). per share value determined by the approach offered by Sprint, even though it amounted to less than half of the $5.00 ACP Master, Ltd.,