Fairness opinions

The client's situation

The client is a listed company on the Paris stock exchange that has received a takeover bid.
Its executive board is required to issue its opinion concerning this bid. However, certain members of the board are concerned by a potential conflict of interest.
Consequently, in compliance with the regulations of the Autorité des Marchés Financiers (AMF - The Financial Markets Authority) the company requires a “fairness opinion,” issued by an independent assessor.

The solution proposed by Accuracy

We propose a fairness opinion based on all of the applicable rules, instructions, and recommendations in this field, including:

  • A brief description of the bid and its context.
  • A complete presentation of the Accuracy team involved with the case, the resources deployed, our fees, our work schedule, etc.
  • An analysis explaining our opinion of the value of the target company, including all of the available valuation benchmarks, and also describing all of the valuation methods used.
  • A critical analysis of the valuation work carried out by the bidder and his advisers.
  • Our conclusions concerning the fairness of the financial terms proposed in the bid.

This fairness opinion is submitted to the executive board of the targeted company (our client) so that they may decide whether or not to accept the offer. It is then incorporated in the "Reply Note" issued by the target company and made public.

The Accuracy difference

  • A rigorous, well justified, and clearly explained opinion.
  • An ability to ensure that the financial terms contained in what can sometimes be very complex offers are presented in an intelligible manner and are clearly placed in their economic and financial context.