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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 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 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 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 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 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 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.,