Does Your Company Need a Fairness Opinion?
Does Your Company Need a Fairness Opinion?
Although not required by statute or regulation, fairness opinions have become an important component of the board of directors and executives deliberation process as they seek to satisfy their fiduciary duties to shareholders and act with due care in an informed manner. Fairness opinions are prepared for and delivered to a company’s board of directors or executive. They express an opinion as to the fairness of the consideration to be paid or received in the proposed transaction or of the exchange ratio in the case of stock-for-stock transactions.
Fairness Opinions are commonly issued in connection with mergers, acquisitions and change of control transactions. In addition, it is highly recommended to obtain a fairness opinion when you conduct corporate restructurings, enter into related party transactions, receive tender offer, and negotiate loan covenants; however, fairness opinions do not constitute recommendations to shareholders or related parties as to how they should vote on a proposed transaction, evaluate the business rationale to proceed with the proposed transaction, or whether they should take any other actions.
The common deliverable of a fairness opinion is a brief document, normally in a letter format; nonetheless, the supporting work behind the fairness opinion letter can be substantial. This supporting work is incorporated in the fairness opinion along with all material factors, conditions, circumstances, and other considerations which were analyzed, assessed, and disclosed in the development of the opinion. The scope of fairness opinion is limited to the financial terms of the transaction and the opinion is based upon the information provided by the subject company and relevant publicly available information as of the fairness opinion engagement date; moreover, valuation analysts rely on the accuracy and completeness of all such information.
How Greenstein Rogoff Olsen & Company Can Help You
Greenstein Rogoff Olsen & Company (GROCO) is a full-service certified public accounting firm, advising and assisting our clients with their accounting, tax, wealth preservation and business valuation needs.
GROCO Business Valuation Analysts have the qualification and resources to provide fairness opinions that satisfy the fiduciary and due diligence responsibility rest upon the Board of Directors and Executives. The dedicated Business Valuation group at GROCO provides the expertise of a large big four firm with the hands on individualized service of a small local firm with regional prices. We are committed to provide our clients and their advisors with the highest services and support available. Our business valuation analysts are certified as accredited valuation analyst from the National Associate of Certified Valuation Analysts and have work experience with the big four accounting firms.
Our business valuations group has preformed hundreds of valuations of privately held corporations and businesses totaling over $3 Billion in appraised values. This experience has spread over sixty-five different industries all geographical regions of the US and all stages of enterprise development, with particular emphasis on early-stage companies in the Silicon Valley.
For more information, contact Alan Olsen, Managing Partner, at email@example.com.
To receive our free newsletter, contact us here.
Subscribe our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Empowering Leaders of Family Businesses
Transcript: Alan Olsen Welcome to American Dreams. My guest today is Lee Brower. Lee, welcome to today’s show. Lee Brower Alan, I’m delighted to be here. Thank you for having me. Alan Olsen Oh, I’m excited for this session night ugly. I’ve sat in classes with you. Management Consulting techniques, strategic planning. And…
Redefining Social Responsibility In The Financial Industry: Our Conversation With David Reiling
See David’s Recent Interview with Alan Olsen: https://www.youtube.com/watch?v=ztdtPfH9RAk&t=2s David Reiling is an accomplished social entrepreneur and innovator in the field of community development finance and financial inclusion. He has been the Chief Executive Officer of Sunrise Banks since 1995, and since then, he has successfully transformed Sunrise Banks into a leading player in the industry,…
NBA All-Star Weekend Economic Influence
Written by Ryan Hickman If you have walked around downtown Salt Lake City recently, you’d come across ginormous signs advertising the NBA. But not just advertisements for the local Utah Jazz, but for the annual pinnacle of NBA events: the 2023 All-Star Game. This annual event envelopes whichever city hosts the events, which include…