A fairness opinion is required in M&A Transactions to give an independent objective and financial analysis, as to the fairness of Share exchange ratio / Share entitlement ratio in case of a merger/ amalgamation or purchase consideration payable in case of an acquisition. Fairness opinion is either mandated under regulatory provisions or is undertaken as a good corporate governance practice.
While issuance of a fairness opinions, a professional evaluations is required to ensure that public shareholders or minority shareholder of the transferor and transferee companies are not being prejudiced by the valuation so arrived and that the valuer has applied valuation methods on relative basis. The objective is to eliminate any biasness towards and favor to the Promoters or their associated entities.
In case of Listed Companies, the Fairness Opinion is required on the valuation of assets/equity shares of the listed as well as the unlisted company by the valuers from an independent merchant banker under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Transique Valuation Advisors can provide independent fairness opinion to the Board of Directors / Management of the companies in connection with their proposed transaction. Our professionals experience includes providing fairness opinion for mergers and acquisitions, amalgamations, demergers and scheme of arrangements (through our associated entity which is a SEBI registered Category I Merchant Banker).