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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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Buy Side M&A Blog Series - Vol 7 - Valuing The Target

RKJ Partners

Some methodologies are inappropriate for early stage businesses or those engaged in certain enterprises such as software development or financial services, where fixed assets are not usually important enough to use for purposes of valuation.

M&A 40