As COVID-19 continues to cause uncertainty in M&A transactions, investors should have a heightened interest in pursuing the rights available to them, including appraisal and inspection rights.
For instance, the Harvard Law Forum expects that buyers who agreed on transaction terms at pre-COVID-19 valuations might seek to terminate those transactions or renegotiate the price point prior to closing, and attempt to do so without incurring liability. While the seller may try to force the buyer to close, if unsuccessful, investors of the selling corporation might want to consider pursuing their shareholder rights, such as their right to appraisal.
As we’ve blogged about before, appraisal can be a viable protection for shareholder interests and rights during times of financial crisis.