Fairness opinions are provided by independent financial advisors to the board of directors for a company involved in a material transaction that impacts shareholder returns. The advisors assess the fairness of a proposed merger, acquisition, buyback, spin-off, privatization, or other major transaction from a financial perspective to shareholders. While there is no legal requirement to obtain a fairness opinion when pursuing a transaction, a company’s board has a fiduciary duty to the shareholders; therefore and are advised to seek a fairness opinion as part of discharging their fiduciary duties by acting on an informed basis.
Fairness opinions enhance decision making by providing context and highlighting potential implications that incentivized participants in the transaction may overlook. A fairness opinion demonstrates to shareholders and other stakeholders that board members are exercising prudence and care when contemplating a transaction, thereby mitigating certain risks of a shareholder lawsuit.
Great American has over 40 years of experience helping companies in transition understand and realize the maximum value of their assets. GA’s fairness opinions offer judgment beyond a calculation. We develop a unique and objective analysis for each transaction that assists boards in fulfilling their fiduciary duties and allowing for all parties to proceed with confidence.