Fairness Opinions

A fairness and solvency opinion provides an independent, objective analysis of a proposed deal’s financial aspects from the point of view of one or more of the parties to the transaction. Any number of factors in deals involving both public and private companies can trigger the need for a fairness opinion. These documents are frequently used to protect the interests of company directors, stockholders, investors and any other involved parties with any kind of fiduciary responsibility. Fairness opinions are often requested in deals involving public offerings, leveraged buyouts or major refinancing/restructuring.

ValueScope has the personnel, expertise and research resources to provide the assurance of fairness to participants that these types of deals require. We are highly experienced in mergers, acquisitions, divestitures and related transactions. A fairness opinion from ValueScope is the product of a comprehensive analysis that includes a thorough review of the terms and structure of the proposed transaction.

The combination of experience, in-depth analysis and sterling credentials that we bring to a fairness opinion can help to discourage challenges from third parties. Not surprisingly, a wide range of both public and private corporations and boards of directors call on us to provide them with independent opinions regarding acquisitions, divestitures, management buyouts and similar major transactions.

  1. Our team provided a fairness opinion to a publicly traded entertainment company in relation to the acquisition of a 50% interest in a UK concert venue and promotion company. The fairness opinion helped our client ensure that the transaction was fair to the existing shareholders and the exchange ratio was accurate. The acquisition helped jump start the company’s plans to open entertainment venues in various US locations.
  2. Our team provided a fairness opinion to a publicly traded video game manufacturer in relation to its equity issuance transaction. The fairness opinion determined that the issuance was fair from a financial point of view. The share issuance gave the company much needed capital to improve its operations.
  3. Our team prepared an in depth analysis of operating asset value for a large manufacturer that was heavily engaged in technology. In addition to determining the asset and equity value, we performed the required balance sheet, cash flow and capital adequacy tests to provide lenders and directors the necessary assurance in the event of a reasonably foreseeable downturn.
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