Letter To Board Of Directors

Typically, fairness opinions for public companies will cost more than private companies because there are usually more shareholders and increased scrutiny of the deal in question. We've seen many fairness opinions in the lower and middle markets of private companies cost in the neighborhood of $50,000 to $100,000.

Fairness opinions are not always required in transactions involving public companies, but they can be helpful in reducing the risk associated with major financial actions or purchases, including the risk of litigation.

A fairness opinion is a report that evaluates the facts of a merger, acquisition, carve-out, spin-off, buyback, or another type of business purchase. It provides an opinion about whether or not the proposed stock price is fair to the selling or target company.

A solvency opinion makes determinations as to whether, after giving effect to a transaction: The company's assets exceed its debts; The company should be able to pay its debts as they come due; The company is not left with unreasonably small assets or capital; and.

A fairness opinion is typically delivered to a board at the time that the board makes its decision on whether or not to approve a proposed transaction.A fairness opinion or independent valuation can conclude a value range above or below the potential deal value, thereby leading to revised deal terms.

Fairness opinions are filled with SEC and stored in the EDGAR database which is available to the public.