Shareholder activists continue to seek appraisal rights actions togenerate value from public M&A transactions. During the past few years, those actions served not only as a way for shareholders toincrease deal value but also to generate additional returns.
At a glance
- Appraisal litigation remains the subject of much debate in legal circles.
- Experts speculate the number of actions may continue to rise.
- Given what’s at stake, it will be interesting to see whether companies develop their own tactics to combat the threat ofappraisal rights actions.
- It’s important for companies that are considering an M&A deal toreduce potential risk by taking a practical approachto both the valuation and sale process.