Fair Value, Transaction Price, and Common Equity Price in Delaware Appraisal Litigation

30 July 2019
William P. Hrycay

Associate Director William P. Hrycay has published “Fair Value, Transaction Price, and Common Equity Price in Delaware Appraisal Litigation” in Law360. In this article, Mr. Hrycay discusses the use of transaction prices by the Delaware Chancery Court to establish “fair value” in appraisal litigation. Despite occasional minor deal process flaws and the availability of other approaches, Delaware courts have increasingly relied on the transaction price as the best indicator of fair value in appraising acquired companies. Mr. Hrycay analyzes valuation disputes between petitioners and respondents in appraisal litigation cases since 2013 and examines the trend toward and the reliability of using transaction price as an indicator of value.

In a forthcoming article, Mr. Hrycay will discuss the 2018 Aruba Networks decision and whether it has changed the definition of “fair value” under Delaware law.