Why Hiring A Fairness Opinion Valuation Firm Will Benefit Your Company During A Major Financial Transaction

Regardless of the sector or industry that your company operates n, there may come a time when your organization must consider a serious financial decision that affects the state of the business itself. This transaction could be a merger, acquisition, corporate reorganization, or buyout with multiple offers. If your company encounters any of these possibilities, it is essential to seek the advice of an experienced fairness opinion valuation firm to ensure that the deal or sale is equitable for everyone involved. Here are 3 advantages of hiring a fairness opinion valuation firm before making any significant financial moves for your organization.

1) Getting a fairness opinion can help your business make more informed decisions.

Simply put, a fairness opinion is a comprehensive analysis of whether a notable financial transaction carries any undue risks or drawbacks for an organization. A fairness opinion valuation firm looks at a number of factors surrounding the transaction, including the prices being offered, the potential benefits of the deal for either party, and the proposed terms of the agreement. Since every aspect of the transaction has been scrutinized by the fairness opinion valuation firm, your company can confidently use the resulting data to make highly informed decisions regarding the deal. For instance, a fairness opinion could reveal that a company's suggested per-share value isn't truly reasonable and should be revised. As such, a fairness opinion valuation firm can help you avoid problematic decisions from the start.

2) Working with a fairness opinion valuation firm will show greater transparency between your organization and your shareholders.

Throughout the transaction process, you will need to ensure that your shareholders have full faith in your actions. By hiring a fairness opinion valuation firm, you will make it clear that you are doing everything necessary to complete the transaction judiciously. Both your executive leadership team and your outside shareholders will appreciate the transparency because they'll know nothing underhanded is happening with the deal. The fairness of the transaction will not be in question, and your organization can move forward with the process above reproach. This is especially relevant if you are merging with another company, as you'll need to maintain open communication to keep stakeholders and employees engaged in the long run.

3) A fairness opinion valuation firm will help protect your company in the event of any lawsuits that may arise as a result of the transaction.

Even if you take caution during your organization's financial transaction, some risk is still possible. Lawsuits can be filed by your shareholders if they don't feel that the deal was entirely fair. Failing to demonstrate that you exercised due care in the fiduciary interest of your organization could lead to accusations of an unfair deal. For example, legal consequences could follow if your company rejects one buyout bid in favor of another without illustrating that the decision was made only after properly weighing every option. To reduce the chances of expensive litigation against your company, you should seek counsel from a fairness opinion valuation firm to guarantee that the transaction is straightforward and direct at all times.  

If your company is considering a major financial transaction, it is certainly worth acquiring a fairness opinion before taking any steps. Be sure to work with a fairness opinion valuation firm—such as Marshall & Stevens—to receive a knowledgeable and thorough analysis of your particular situation.