Evans & Evans

Fairness Opinions

At the outset, no one anticipates that business transactions will be unsuccessful. Unfortunately, many business transactions do not unfold as planned and may result in a loss of shareholder value. And when losses are significant, litigation may follow.

Directors of a corporation bear the ultimate responsibility to protect shareholder value. Because of this, they need to ensure that proposed transactions, whether a merger, an acquisition, a divestiture or a public offering are fair to all of shareholders.

The best way to ensure that a transaction is fair is to obtain a formal Fairness Opinion from a qualified and independent advisor. A Fairness Opinion is a professional report that states whether a particular transaction is considered fair from a financial perspective. Although not always required by law or securities regulation, a Fairness Opinion can be extremely useful to help fulfill fiduciary obligations or Directors as well as to protect from litigation that might arise. In effect, providing an insurance policy.

Because of our established independent valuation practice and significant business experience, Evans & Evans is able to offer an exceptional perspective on fairness. We write opinions that are relied upon by Boards of Directors, Special Committees of the Board, shareholders, trusts and courts of law.

You can rely on our opinions in various transactions, including:

  • Mergers & Acquisitions – Sell-side and buy-side advice in transactions involving substantial corporate assets.
  • Going Private Transactions – Management-led buyouts and private party acquisitions of public companies.
  • Related Party Transactions – Any substantial transaction involving related parties or affiliates.
  • Exchange Offers – Transactions involving the exchange of debt or equity securities.
  • Employee Share Ownership Plans (ESOPs) – Purchase of shares by employees