Opinion ID: 772475
Heading Depth: 2
Heading Rank: 2

Heading: Methodology of Evaluation

Text: 20 The Company also argues that the district court erred in failing to provide a precise mathematical calculation of its determination of fair value. The ultimate determination of fair value is an issue of fact, so we review for clear error. See Flarsheim, 432 S.W.2d at 255 (proclaiming that under Missouri law, the judgment of the trial court will not be set aside unless clearly erroneous). The district court has wide discretion in determining fair value, King, 765 S.W. 2d at 306, and may ascertain proof of value by any techniques or methods which are generally acceptable in the financial community and otherwise admissible in court. Weinberger v. UOP, Inc., 457 A.2d 701, 713 (Del. 1983). 21 Because the district court's determination of the stock price falls within the range proposed by the experts discussed in its opinion, we hold that there has been no error. The district court issued an extraordinarily thorough memorandum, summarizing the different valuation methods proposed by each expert and weighing the pros and cons of each method. The district court explained that it generally agreed with the expert Reilly's valuation of the company, with the exception that Reilly's price reflected too much optimism about the future growth prospects for the Company. Consequently, the district court adjusted its valuation of the entire company downward. 22 It is unfortunate that, after performing such a well-reasoned and thorough review of the record, the district court was not more explicit in elaborating how it reached its final calculation of price per share. Regardless, the district court is not required to provide explicit detail or mathematical precision in fair value cases, since the very nature of most cases precludes proof of value and damage with the precision of mathematical computation. Phelps v. Watson-Stillman Co., 293 S.W.2d 429, 432 (Mo. 1956). It is also permissible for a district court to arrive at a determination of fair value that is not advocated by any of the experts. See King, 765 S.W.2d at 307. Therefore, we hold that the district court's determination of the price-per-share was not clearly erroneous. Cross-Appeal No. 99-3178