Is Your Company in the Market for a Fairness Opinion?
Is Your Company in the Market for a Fairness Opinion?
Is that really fair? In my opinion, yes it is. Obviously a fairness opinion is much more than that in the financial and business world. So what is a fairness opinion, exactly? One of the final parts of any sale or merger is a fairness opinion, wherein an independent financial advisor gives a complete review of the financial aspects of a given transaction to the board of directors to the companies involved.
The financial advisor must look at every aspect of the deal in regards to financing, including pricing and compare those aspects to the market for similar businesses. After his or her review, the financial advisor must then either agree or disagree that the transaction is fair from a financial aspect, including whether or not it’s fair to minority shareholders.
A fairness opinion is important because it demonstrates that the company’s board of directors is doing its due diligence in order to prove that it is acting in the company’s shareholders’ best interest. This can help shareholders see that the board’s decisions are financially sound.
Although statutes or regulations do not require fairness opinions, they can be very helpful in any merger or acquisition process. At GROCO, we have years of experience providing business valuations and fairness opinions for hundreds of different companies and we can help you too. Just click here to learn more about fairness opinions or click here to contact us.
What’s the Biggest Mistake Young Investors Make?
What’s the Biggest Mistake Young Investors Make? There are all kinds of investors and there are even more investing strategies. There are also just as many possible mistakes you can make as an investor. Those who’ve been in the stock market a long time have likely seen it all. And if they’ve had any kind of sustainable success…
This Could Be the Year to Stop Itemizing Your Deductions
This Could Be the Year to Stop Itemizing Your Deductions Tax season is just about here again. That means millions of people are getting ready to gather up all their financial information for the year 2018 and file their returns. This year will be like no other, thanks to the Tax Cut and Jobs Act. One of…
Why Are Wealthy Families Turning Their Noses on Hedge Funds?
Why Are Wealthy Families Turning Their Noses on Hedge Funds? Many investors look to see what the wealthy are doing when it comes time to get into the stock market. After all, these investors are wealthy because they’ve played the market right. For years, many of the wealthiest investors in the country have hedged their…
These Two Phrases Are Signs of Weak Leadership
These Two Phrases Are Signs of Weak Leadership Good leaders and bad leaders have many differences. Effective leaders tend to do things well, while ineffective leaders often don’t. However, it’s interesting to note that both kinds of leaders make mistakes. No one is perfect. What sets these two kinds of leaders apart is how they…