We’ve previously written about how appraisal rights are a factor considered by deal-makers during the merger process, as well as by in-house counsel and other professionals involved in mergers: but are appraisal rights part of the decision-process when deciding where to incorporate? Perhaps they should be, as one writer has compared the appraisal regimes in Delaware and Florida, comparing and contrasting the two regimes with an eye towards those deciding between Delaware and Florida as a place of incorporation.
The author’s main observation is that appraisal in Florida is available in “more circumstances” than Delaware, though we would also note that Delaware has the most extensive corpus of law on issues of appraisal in not only the US but, likely, in the world.
Should a founder consider appraisal when deicing where to incorporate? As we’ve urged before, appraisal rights should – and do – matter to investors, and thus any founder thinking about raising capital in the future should consider appraisal at founding as well.