Support your plan. A fairness opinion is a letter that states whether a specific transaction is fair. The fairness opinion speaks to the fairness of the terms of a transaction, as of a specific date, given a specific set of transaction and business assumptions.
Studies indicate that fairness opinions lead to lower premiums paid and to a higher success rate through deal completion. Additionally, they are sometimes necessary to assist officers and directors to meet fiduciary requirements under the Business Judgment Rule.
VFP has been engaged to provide fairness opinions in cases where shareholder conflicts, proposed shareholder dilution and when they were mandated by a regulatory authority. For more information about when fairness opinions are needed, read our blog.
VFP’s fairness opinions are free from the conflicts of interest that are faced by investment banking firms. We are not party to or aligned to receive compensation from the transaction and this furthers the independence of our work.
If you would like to read more about VFP’s valuation services visit What is Valuation?; Tax Valuation & Planning; Buying & Selling a Business; Shareholder Disputes and How is VFP Different? in the Valuation section.
