In many transactions, a fairness opinion is provided to an ESOP Trustee, the Board of Directors, or management team addressing whether the transaction is fair from a financial prospective. This opinion not only takes into consideration the fair market value of the stock, but looks at other potential issues of fairness such as the pricing of debt, the impact of stock options and other forms of synthetic equity, whether employment and non-compete agreements are market-related, and whether the transaction is fair on a relative basis, as compared to other transactions that have or are expected to occur.
A solvency opinion is a determination that a company will remain solvent based on a set of criteria. Analysis is conducted to assess whether a company has an asset base that exceeds its debt obligations, and if the company can meet its debt obligations as they come due, while continuing to meet its operating expense obligations. Solvency opinions are often required by board of directors, lenders or buyers and sellers for leveraged transaction or debt refinancing.
Mergers and Acquisitions
Evaluating transactions from a strategic and a financial buyer’s point of view, we prepare a valuation of the subject company and can assist with the negotiation process.
Going Private Transactions
Our professionals consult with boards of directors and management to help them determine the price used in consummating such transactions.
We are often retained to render opinions to boards of directors to determine if the consideration received is adequate and fair to shareholders.
Our team provides financial advisory services to banks, as well as other major creditors (secured and unsecured) and equity holders. This involves financial reviews of reorganization plans and valuation of underlying assets and liabilities.
The valuation expertise we provide helps clients recapitalize businesses using reverse stock splits, equity conversions, management buyouts, and shareholder redemptions.