Focus on valuation – Valuation issues are at the forefront in dissenting shareholder cases

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Abstract: Attorneys involved in dissenting shareholder cases quickly learn that business valuation plays an important role in determining damages. This article discusses three critical valuation matters to consider in shareholder disputes: the appropriate standard of value, effective date, and valuation methods. A sidebar summarizes a recent case in which the Arizona Court of Appeals upheld the valuation of a dissenter’s interest based on a failed IPO. Kottayil v. Insys Therapeutics, Inc., No. 15-0765, Ariz. Ct. App., August 29, 2017