Delaware Business Litigation Report

Court Of Chancery Values Small Cap Company

Merion Capital LP v. 3M Cogent, Inc., C.A. 6247-VCP (July 8, 2013)

This is another in the series of recent appraisal cases.  As usual, the opinion reflects a careful analysis of the traditional methods used to value a company in an appraisal proceeding.

Particularly noteworthy is the Court's continued insistence that the expert's opinions be supported by a full explanation and that conclusions should be grounded in practices recognized by valuation literature.  This translates into the point that these appraisal cases are not for novices and demand familiarity with the financial literature and processes involved.

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