Fairness and Solvency Opinions
In any business transaction in which substantial value is at stake, it is critical that stakeholders have insightful, independent analysis and advice in order to make a truly informed decision. BVA Group leverages its extensive analytical capabilities, transactional experience, and business acumen to advise clients on crucial valuation and financial issues.
In today’s world of heightened scrutiny of corporate decision makers, fairness opinions are integral to corporate transactions. Boards of directors, trustees, and other fiduciaries facing these high-stakes decisions must contend with the risk of legal challenges to their assessments. Obtaining a fairness opinion informs the recipient as to the fairness of the proposed transaction from a financial point of view and helps to satisfy fiduciary duties placed on these individuals.
As a nationally recognized financial advisory firm, BVA Group brings credibility and clarity to this process. BVA professionals have extensive experience advising on all manner of corporate transactions, including those involving complex structures and cross-border arrangements. We apply proven valuation techniques and thorough analyses of the latest industry and regulatory conditions to advise a diverse base of clients ranging from large, publicly traded companies to closely held and private equity-backed corporations.
The independent perspective BVA offers stands up to the increasingly critical view stakeholders and courts have taken towards the actual or perceived conflicts of interest of other advisors. This objectivity helps us inform our clients through quality opinions without complicating the deal process.
BVA provides fairness opinions in connection with transactions such as:
- Acquisitions and divestitures
- Leveraged buyouts
- Going-private transactions
- ESOP transactions
- Related-party transactions
Similar to a fairness opinion, a solvency opinion assists the board of directors or other fiduciaries in determining if a proposed transaction leaves the company solvent and with sufficient capital. Board members often seek a solvency opinion in connection with a special dividend, spinoff, or recapitalization transaction. Solvency opinions are often required in the context of bankruptcy, restructuring, and certain types of commercial litigation.
BVA Group can assess a company for solvency by testing whether:
- The fair value of the company’s assets exceed the stated value of the company’s liabilities
- The company will be able to pay its liabilities
- The company will not have an unreasonably small amount of capital for the operation of the business in which it is engaged
Solvency opinions require a substantial amount of due diligence, and scenario analysis is often required. BVA has the experience and qualified personnel to assist with these complex matters.