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

How Can the Wealthy Cut Taxes on Their Social Security Benefits?

Everyone works a lifetime with the idea that at some point they can retire and collect Social Security benefits throughout their so-called “golden years.” However, when it comes to Social Security, this year is not a good time to be a high-income earner. Medicare Part B Premiums are expected to rise for high-income retirees. So,…

Mansion Ends Up Getting Owner in Hot Water for Tax Evasion

Is it possible to hide anything from the IRS? Even when you think you’re safe, it appears the IRS has an eye in the sky. That eye seems to be all reaching, at least in Pennsylvania. A wealthy real estate developer and CEO of Automated Health Systems owns a luxurious 32,400 square-foot mansion that apparently…

Why Are Your Property Taxes So Darn High?

While the majority of people pay the most attention to the taxes they see regularly, i.e. income and sales tax, there are other taxes that cost you a lot of money that you may tend to forget about. One of those taxes that cost a lot, but that kind of goes unnoticed is property tax.…

IRS Is a Lot More Open to Compromise These Days

It used to be that if you owed a large debt to the IRS you didn’t have a great chance of catching a break. Even though the IRS has always been able to compromise, at least a little, the tax agency has never been really eager to do so. Some people might not even be…