Owen v. Cannon – Delaware Court narrows valuation gap

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Abstract: Appraisal issues took center stage in a recent dissenting shareholder case. This article discusses several issues that resulted in a valuation discrepancy of roughly $32 million on the cash buyout of a minority owner. Two primary issues include 1) the use of management’s cash flow projections in a discounted cash flow analysis and 2) the appropriate rate at which to “tax affect” the subject company’s earnings.