Danny Pannese, Benoit Boyer, Paul Iannone Pen 'The Fair Market Value-Fair Value Dichotomy: Valuation Discounts in Recent Shareholder Dissent Cases' for The Value Examiner
October 19, 2023
Danny A. Pannese, MST, CPA, ABV, CFF, CVA, CSEP, Benoit Boyer, PhD, and Paul N. Iannone, JD, CPA, MST of the Jack Welch College of Business and Technology at Sacred Heart University wrote “The Fair Market Value-Fair Value Dichotomy: Valuation Discounts in Recent Shareholder Dissent Cases” for The Value Examiner, a publication of the National Association of Certified Valuators and Analysts (NACVA).
In shareholder litigation, a frequent issue is whether, under state law, valuation discounts are permissible in determining the value of a minority shareholder's interest. This article discusses a 2022 Connecticut court case dealing with this subject. It also examines and compares recent disputes in other jurisdictions where valuation discounts became an issue in calculating the appropriate value of minority shares under a fair value standard.