Defense counsel retained Cornerstone Research to evaluate the fairness of an acquisition price and whether the analyses and inputs used to support the sale price were reasonable. Following the acquisition of Flow International Corporation (Flow) by a private equity firm, American Industrial Partners (AIP), Flow’s shareholders sued for breach of fiduciary duty. They claimed Flow’s board had engaged in an unfair sale process and that shareholders had received less than the fair value of their equity. Defense counsel retained Dr. Allan Kleidon of Cornerstone Research to evaluate the acquisition price and the valuation analyses used to support the fairness opinion of the board’s financial advisor. Dr. Kleidon concluded that the acquisition price paid by AIP was higher than Flow’s standalone va

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