Fairness & Solvency Opinions

In today’s litigious society, boards of directors and senior management are increasingly at risk of lawsuits from all corners.

Shareholders, political bodies and regulators are constantly involved in court battles with corporations and their executives. Because of this, boards must obtain adequate and well-documented opinions from objective sources regarding the fairness of company transactions.

Fairness Opinions

Previously called “comfort letters,” fairness opinions are vital for a company, particularly in transactions where these opinions will be disclosed to shareholders. Without these, a board’s risk of corporate malfeasance lawsuits is greatly increased.

The process for selecting a valuation firm, the manner in which an opinion is prepared, and how the opinion is presented to a board of directors can make a significant difference in how well the transaction will stand up to legal challenge. There is a significant amount of know-how to be considered in this area, which can mean the difference between being protected or not. BVC’s fairness opinions are credible, authoritative, well-documented, and designed to offset and minimize the risk of legal challenge.

Solvency Opinions

Prior to consummating a transaction, one of the key issues is the solvency of the entity in question. For obvious reasons, the acquisition of an insolvent entity can have repercussions on the company acquiring the asset.

Solvency opinions provide a level of reassurance to stakeholders in a transaction as to whether or not an entity is solvent, either before or after a transaction. Lenders, financial advisors, attorneys, boards of directors and shareholders who are considering acquisitions, mergers or recapitalizations must rely on an independent, experienced firm to provide an objective solvency opinion. BVC is an industry leader in solvency opinions with deep expertise in determining and applying the accepted approaches used to determine solvency.