Shareholder buyout: Battle of the valuation experts

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Abstract: In a recent New York buyout case, the sole issue before the court was the fair value of the petitioner’s interest in the respondent corporation. This article explains that outcome ultimately turned on the credibility of opposing valuation experts and the soundness of their methods. A sidebar highlights another shareholder dispute where the Delaware Chancery Court was provided with unreliable valuation opinions from both sides. Sergio Magarik v. Kraus USA, Inc., No. 606128/2015 (N.Y. Sup. Ct., Apr. 28, 2020) William Richard Kruse v. Synapse Wireless, Inc., No. 12392-VCS (Del. Ch., Apr. 22, 2020)