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.

Posted in

The State of the Private Equity Industry—Is It All Down Hill From Here?

  In the past private equity has been a solid way of investing taking in trillions of capital, but with the ever changing world we live in, what is the state of the industry? Private equity investments typically consist of money being placed in a company by venture capital firms, private equity firms or angel…

How the Wealthy Save on Taxes

  Whether you make minimum wage or you’re in the richest 1 percent of earners, every taxpayer likes to keep as much of his or her hard-earned income as possible. There are hundreds of ways to save on taxes and many of these strategies are universal to all taxpayers no matter which tax bracket they…

How the Internet Became Commercial

  What’s Behind the Commercial movement of the Internet? Believe it or not the Internet was not originally created to share your life on social media sites like Facebook and Instagram or to watch movies, play games or follow your favorite pastime. When it was first invented, the military and research universities were the primary…

Critical Decisions When Launching a Startup

There are countless aspects to launching a startup company. To do it successfully a founder has to make many critical decisions and be right on most of them. Many entrepreneurs have a great idea or product with great plans to make it successful. However, they don’t make the right business decisions, which leads to their…