When Management's Best Guesses Fail, Boards Can Too

Law360, New York (April 12, 2013, 8:34 PM EDT) -- Predicting financial performance is tricky. Each quarter, dozens of companies fall short of expectations, while a lucky few sail past them. Investors grumble, executives promise to do better and everyone lives to fight another quarter.

But when a company is for sale, management's inability to come up with accurate figures isn't just annoying to shareholders and analysts. It's a potential legal nightmare for boards of directors tasked with overseeing the process, attorneys say. 

Buyouts offer a stark choice. Boards must decide, on behalf of shareholders, whether...
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