If you liked Part One of my Business Divorce Roundtable podcast interview of Chris Mercer on the subject of the marketability discount in statutory fair value appraisal proceedings, you’ll definitely enjoy Part Two which is now available on a bunch of podcast directories including iTunes, Stitcher, Soundcloud, or your favorite RSS reader. Better yet, you can listen to it by clicking here. And if you haven’t yet listened to Part One, click here.
The marketability discount has played an outsized role in New York fair value proceedings under Sections 623 and 1118 of the Business Corporation Law, and has taken on new shades of controversy in recent years as some judges and business appraisers have questioned its theoretical, empirical, and equitable foundations when valuing the shares of dissenting or oppressed minority stockholders in closely held companies.
It also has its defenders, but Chris Mercer is not one them. Chris has taken a very public and vocal stand against application of the marketability discount in fair value cases. In Part Two of my interview, Chris talks about cases in which he has served as expert witness at trial advocating a zero percent marketability discount, including the Giaimo, Chiu, and AriZona Iced Tea cases.
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