What is Fairness Opinion Valuation?
A Fairness opinion valuation is a valuation that qualified advisors conduct, analysts, and fairness opinion consultants. In India, fairness opinion valuation firms will prepare a report which evaluates various facets of a business, like a buyback, merger, carve-out, acquisition, spin-off, or other kinds of business purchase.
The objective of Fairness opinion valuation is to offer insight to investors and shareholders on the risks associated with high-risk transactions, mergers, and acquisitions. Analysts provide their insights and opinions on the matter based on rigorous financial analysis.
Why does a company need to obtain Fairness Opinion Valuation?
Companies are required to obtain Fairness opinion valuation in accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This is to ensure that the company acts fairly and truthfully. The benefit of Fairness opinion valuation is that it fosters transparency with the shareholders as they will obtain an unbiased view of the transaction from a third party. The opinions and insights in the report also aid informed decision-making.
What is the process of Fairness Opinion Valuation?
Fairness opinion valuation is a process that requires financial analysis. The report looks into various aspects of the deal, such as the terms and conditions, any possible benefits from the business collaboration/synergy, and the price offered.
Who can conduct Fairness Opinion Valuation?
The standards regarding who can conduct Fairness opinion valuation differ in every country. Fairness opinion valuation in India is conducted by merchant bankers registered with SEBI (Securities and Exchange Board of India).
What are the challenges faced while conducting Fairness Opinion Valuation?
Significant transactions require a certain level of scrutiny and transparency so that the shareholders can make well-informed decisions. Therefore, the biggest challenge while conducting Fairness opinion valuation is to ensure transparency and fairness for the shareholders.
Our Fairness Opinion Valuation Services
Our Fairness opinion valuation services are provided by top merchant bankers who are registered with SEBI. Fairness opinion reports are made after thorough valuation and analysis by an experienced professional. The experienced corporate professionals follow strict SEBI guidelines to provide our clients with valuable insights and opinions on business purchases, mergers and acquisitions, and buybacks.