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Delaware Supreme Court Affirms Appraisal Ruling Relying On DCF Analysis To Determine Fair Value

Shearman & Sterling

On January 22, 2021, the Delaware Supreme Court affirmed en banc the Delaware Court of Chancery's decision appraising outsourcing and financial services company SourceHOV Holdings, Inc. based on a discounted cash flow analysis ("DCF"). SourceHOV Holdings Inc. Manichaean Capital LLC, No. 215, 2020 (Del.

DCF 52
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Delaware Supreme Court Affirms Appraisal Ruling Relying On DCF Analysis To Determine Fair Value

Shearman & Sterling

On January 22, 2021, the Delaware Supreme Court affirmed en banc the Delaware Court of Chancery's decision appraising outsourcing and financial services company SourceHOV Holdings, Inc. based on a discounted cash flow analysis ("DCF"). SourceHOV Holdings Inc. Manichaean Capital LLC, No. 215, 2020 (Del.

DCF 40
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Growth Equity Interview Questions: Full List, Answers, and Differences vs. Venture Capital and Private Equity

Mergers and Inquisitions

Reference any deals you’ve worked on that required analysis of these points and talk about how they affected the valuation or client’s decisions (this is more grounded than just saying, “I like high-growth companies!”). Notice how “price” and valuation are not on this list. Q: Why growth equity?

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Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Mergers and Inquisitions

Others would counter that growth equity’s rapid ascent was mostly due to the easy money that persisted between 2008 and 2021. Valuations are high, the returns depend on future growth, and deals are for primary capital , i.e., new cash the business needs. There’s usually a long list of previous VC investors as well.

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Keeping Up with Delaware Appraisal Jurisprudence Since Aruba: Deal Price Reigns Supreme, But Will Recent Decision Lead to More Arbitrage?

Cooley M&A

May 13, 2021), may provide new fodder for appraisal arbitrage. May 2021) +2.61% Yes, reduced for synergies and increased for changes in value between signing and closing (due to passage of Tax Act) Arms-length transaction with third party; open and active post-signing market check; unconflicted board Final (no appeal).