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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. The cost of debt = the weighted, post-tax cost of debt.

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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, by giving equal weight to: (1) the deal price, (2) a comparable companies analysis, and (3) a discounted cash flow analysis. Strine, Jr., DFC Global Corp.

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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. July 21, 2017). Noting that the appraisal statute requires the exclusion of "any synergies present in the deal price," the Court evaluated the competing discounted cash flow ("DCF") analyses offered by the parties and adopted the $2.13 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, by giving equal weight to: (1) the deal price, (2) a comparable companies analysis, and (3) a discounted cash flow analysis. Strine, Jr., DFC Global Corp.

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. July 21, 2017). Noting that the appraisal statute requires the exclusion of "any synergies present in the deal price," the Court evaluated the competing discounted cash flow ("DCF") analyses offered by the parties and adopted the $2.13 ACP Master, Ltd.,