Fairness Opinions

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On both buy and sell sides of the transaction, it is common for a Company's governance body to desire assurance that they are transacting fairly on behalf of their shareholders. An outside financial expert does this by analyzing the particulars of a deal and determining if it is fair from a financial point of view. The results of this analysis are memorialized in a Fairness Opinion.

Historically, the representative investment bank has written the Fairness Opinion. However, because they have a vested interest in the transaction closing, regulatory and legal authorities have questioned the appropriateness of this practice. Recently, these bodies have raised the standard for Fairness Opinions, calling for independence in the financial expert.

Because of our comfort and experience in non-advocacy roles, Strategic Valuation Group often provides this unbiased perspective to decision makers. Boards can rely on us throughout the negotiation process to provide an independent perspective that often checks their motivations, ensuring a deal is made based on sound strategy and financial reasonableness. We can uniquely address this need with our experience in Allocation of Purchase Price and Goodwill Impairment. We have seen what drives value in a deal and what factors contribute to a transaction gone awry with subsequent goodwill impairment. This experience is invaluable and leads to sound analysis. In addition, our unparalleled valuation credentials and expertise gives boards a highly credible opinion to demonstrate to key stakeholders that they have met their fiduciary duties.