The Delaware Chancery Court (DCC), it appears, may be living in the past.  Despite new thinking on issues related to implied minority discounts, the DCC has tenaciously maintained that enterprise values for comparable guideline public companies must inherently be adjusted for control premiums.  Though the experts who initially imbued this thinking into the DCC have since changed their minds, the Court has held fast, creating an environment where legal standards regarding fair value are opposed to the guidance of the profession's top experts.

In "Implied Minority Discounts in Statutory Fair Value: The Doctrine that Just Won't Die", expert appraiser Gil Matthews and Michael Wachter, legal scholar, and close watcher of the DCC, will guide listeners through this sticky situation and the challenges it creates for anyone adjusting for minority discounts.  Through their presentation attendees will see the emergence and divergence of this issue, its wider repercussions, and will be challenged to review their thinking on minority discounts and other control adjustments.

• Introduction: An overview of the Delaware Chancery Court (DCC)
• Reasoning behind the issue:
  • Legal standards on control and "going concern"
  • Why and when the "Implicit Minority Discount" (IMD) is used
• Origins of the issue:
  • A review of case law pertaining to the use and acceptance of the IMD
  • Experts roles in shaping the story
• Placing the issue in context:
  • What the Court's methods mean for adjustments
  • Reconciling expert guidance with legal standards
• Q&A with Gil Matthews and Michael Wachter

• Learn the origins of the DCC's approach to the IMD and their rationale for maintaining that standard
• Learn how new thinking on minority adjustments differs from the DCC's
• Understand how the DCC's legal standards affect your valuations