Transaction Advisory, Investment Management

November 29, 2012

Fairness Opinions

A fairness opinion provides an independent objective analysis of the financial aspects of a proposed transaction from the point of view of one or more of the parties to the transaction.

They are often used to protect the interests of company directors, stockholders, investors and involved parties with any kind of fiduciary responsibility. While fairness opinions can not only help avoid disagreements among the individual stakeholders or between stakeholders and the Board, a fairness opinion is often necessary for a Board to have fulfilled their fiduciary duties.

Mercer Capital leverages its historical valuation and investment banking experience to help clients navigate a critical transaction, providing timely, accurate and reliable results. We have significant experience advising boards of directors, management, trustees, and other fiduciaries of middle-market public and private companies in a wide range of industries. Our independent advice withstands scrutiny from shareholders, bondholders, the SEC, IRS, and other interested parties to a transaction, and we are well-versed in the new industry standards regarding fairness opinions issued by FINRA in late 2007.

A variety of factors in transactions involving both public and private companies can trigger the necessity for a fairness opinion, including:

  • Merger or sale of the company
  • Sale of subsidiary businesses, or distinct lines of business
  • Recapitalizations
  • Stock repurchase programs
  • Squeeze-out transactions
  • Spinoffs, spinouts, or split-ups
  • Certain ESOP-related transactions
  • Other significant corporate events
When performing a fairness opinion, it is also important to take into account any number of alternatives that may exist to the proposed transaction. As a valuation services firm, Mercer Capital is particularly well-equipped to provide the analysis for a deal in which a consideration other than cash if offered – namely, when the consideration is an interest in a closely held company. Mercer Capital's comprehensive valuation and transaction experience with public and private capital companies empowers us to efficiently provide unbiased fairness opinions that can rely on to assure stakeholders that the decisions being made are fair and reasonable. Contact a Mercer Capital professional to discuss your needs in confidence.

Continue Reading

The Margin RIA Buyers Actually Underwrite
The Margin RIA Buyers Actually Underwrite

Why the Post-Closing Cost Structure Matters More Than the Historical Margin

RIA buyers often focus less on a seller’s historical margin than on the earnings the business can generate after closing under the buyer’s operating model. Differences in integration strategy, cost structure, and platform capabilities can lead buyers to underwrite materially different margins and values.
RIA Valuation Insights Blog Investment Management
Read Now about The Margin RIA Buyers Actually Underwrite
Does AI Spending Increase an RIA’s Value-or Just Reduce Its EBITDA?
Does AI Spending Increase an RIA’s Value - or Just Reduce Its EBITDA?
AI investment can create value for RIAs by improving capacity, growth, efficiency, and risk management, but the benefits must ultimately translate into stronger cash flow or reduced risk. Recurring AI costs generally remain operating expenses, making measurable adoption and returns critical to valuation.
Middle Market Transaction Update Fall 2026
Middle Market Transaction Update Fall 2026
During the second quarter of 2026, deal volume and average pricing in middle market M&A was relatively stable compared to prior quarters’ activity.
Middle Market Transaction Update Newsletter
Read Now about Middle Market Transaction Update Fall 2026

Cart

Your cart is empty