Applicability of Small Size Premiums in Determining the Fair Value of Shares and Appropriate Consideration
In the article, the authors focus on one of the most pressing issues currently pertaining to company valuations for the purposes of determining the fair value of shares and the amount of reasonable consideration (e.g. in squeeze-out situations).
The Czech Supreme Court’s and Constitutional Court’s case law has not yet explicitly held whether the so-called “small size premium” (also “small cap premium”) can be applied to the discount rate in such cases.
The issue has been subject to a number of court cases. The authors believe there are a number of compelling reasons for applying the small size premium, including the extensive case law of the Delaware courts, to which the Constitutional Court, among others, explicitly refers.
The article is available in the double issue 23-24 of Legal Digest from 2021 and is also available on Beck-online at the link here.
Other articles
KŠB achieved a significant victory in one of the most closely watched cases concerning a review of the adequacy of the consideration paid in a squeeze-out of minority shareholders
The Municipal Court in Prague, in the first instance, dismissed the claims of former minority shareholders of PFNonwovens a.s., who challenged the adequacy of the consideration paid during the squeeze-out carried out in March 2021 and sought to have it increased by up to double the amount.
KŠB podpořila letošní SVOČ na Právnické fakultě UK
Advokátní kancelář Kocián Šolc Balaštík se letos stala partnerem Studentské vědecké a odborné činnosti (SVOČ) pořádané Právnickou fakultou Univerzity Karlovy.
Je stabilita stavebního práva reálným cílem?
Advokátní kancelář KŠB byla odborným garantem diskuse legalwebu s názvem „Stabilita stavebního práva – iluze, nebo reálný cíl?“, která na konci dubna přivedla ke společnému stolu zástupce veřejné správy, developerů, profesních svazů i dalších odborníků ze stavební praxe. Debata se zaměřila na aktuálně projednávané změny nového stavebního zákona (NSZ) a jejich očekávané dopady.
