A widely followed corner of the blog is our “Valuation Basics” series, where in earlier posts we have described many of the components of the discounted cash flow analysis, the income-based valuation methodology preferred by Delaware’s Court of Chancery. (See here, here, and here). Earlier this month we examined a market-based valuation
June 2015
Stockholders Seek 45% Premium in BMC Appraisal Case
By Steve Hecht on
As reported in Law360, stockholder Merion Capital LP petitioned the Delaware Chancery Court this week for an award of $67 per share for its stock in BMC Software, Inc. Such a demand would reflect a 45% premium to the merger price of $46.25. Indeed, as Law360 reported, the parties’ arguments focused to a large…
Valuation Basics: Comparable Companies Analysis
By Larry Rolnick, Steve Hecht & Michael Hampson on
Our “Valuation Basics” series has focused on the various components of a discounted cash flow analysis under the income approach, which seeks to value a company based on the present value of its projected cash flows. This post and those to follow in this series will now move away from the income approach…
Settling Safeway Shareholders Achieve Substantial Premium Within Six Months of Closing
By Steve Hecht on
As reported in the Wall Street Journal, several investments funds who had exercised appraisal rights in connection with Albertsons’ acquisition of Safeway Inc. have now settled their appraisal case for a 26% premium over the merger price within just half a year after the deal closed. The settlement, at $44 per share, netted $127…