control premium

Fueling the DLOM Debate: Control Transfer Restrictions and the Discount for Lack of Marketability

By Peter J. Sluka on August 16, 2021

Posted in Valuation, Valuation Discounts

When valuing an owner’s interest in a closely-held company, the calculation and applicability of a discount for lack of marketability is among the most fertile grounds for sharp disagreement. One open question: should the DLOM account for any contractual restrictions on a controlling owner’s ability to transfer his or her control? …
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Zelouf (Part Two): Fair Value Ruling Addresses Range of Issues

By Peter Mahler on October 20, 2014

Posted in Buyout, Derivative Actions, Valuation, Valuation Discounts

Last week’s post highlighted Justice Kornreich’s rejection of a marketability discount in the Zelouf case, a dissenting shareholder appraisal proceeding. In this week’s Part Two, New York Business Divorce examines a number of additional issues of interest in the Zelouf decision, including tax-affecting, control premium, and damages for quasi-derivative claims. …
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Zelouf (Part One): Marketability Discount Rejected in Fair Value Proceeding

By Peter Mahler on October 13, 2014

Posted in Dissenting Shareholder Appraisal, Family-Owned Businesses, Freeze-Out Merger, Valuation, Valuation Discounts

This week’s New York Business Divorce presents the first of a two-part examination of Justice Shirley Kornreich’s must-read decision in Zelouf International v. Zelouf, a dissenting shareholder appraisal proceeding in which the court rejected application of a marketability discount. …
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