Mergers and Acquisitions

Fairness Opinion

When a company receives an acquisition offer, a fairness opinion may sometimes be required, but is almost always a good idea. Because of our expertise and experience in the merger and acquisition arena, we can review a potential offer and make the determination as to whether it is a reasonable or “fair” offer.

A fairness opinion is crucial in order to meet a fiduciary’s responsibility to exercise good business judgment in an M&A transaction. Such an opinion is required in many situations when the company is publicly held, especially if there may be a potential conflict of interest. Although not required in privately held transactions, it is probably more valuable to the small business owner.

Many times small business owners may only be involved in one or two M&A transactions throughout their career. Considering many of these transactions can be several hundreds of thousands of dollars on up to well into the eight-figure range, the fee for a fairness opinion/review is a fraction of a percent, yet the impact could be significant. We have literally saved our clients over a million dollars because a deal was not structured to maximize the value to our client. Even in small transactions, we can normally create additional value for our clients, which far exceed the cost of a fairness review. If the offer is simply a great deal, at least you will have the peace of mind knowing that you were able to maximize the value of your company.

 

M & A

Valuation Preparation Prospecting Negotiations