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This research examines the decline in majority-of-the-minority (MOM) conditions in freezeout transactions and proposes an alternative mechanism.

Declining MOM Conditions in Freezeout Transactions and the MOOM Alternative

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Empirical evidence shows a significant decline in MOM conditions for freezeout transactions, suggesting a need for policy reform.

This research examines the decline in majority-of-the-minority (MOM) conditions in freezeout transactions and proposes an alternative mechanism.
Analyzed Delaware court decisions from 2022-2023 regarding freezeout transactions
Collected empirical data on the prevalence of MOM conditions pre- and post-trilogy of decisions
MOM conditions decreased from approximately 80% to 45% following recent court decisions
The decline in MOM conditions reflects potential dis-incentives created by the judiciary
Proposes the majority-of-the-original-minority (MOOM) condition as a solution to address the risk posed by activist investors

Restrepo et al. (2026) studied this question.

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