Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Enhancing the value of fairness opinions: Limiting risk in the post‐enron era

Enhancing the value of fairness opinions: Limiting risk in the post‐enron era The NASD and the SEC are looking into methods, fees, conflicts of interest, and other issues related to fairness opinions. The fairness opinion process as currently practiced is likely to be deemed inadequate, and as such will offer less protection to boards of directors. To protect the role of the fairness opinion process as a risk‐mitigating tool, the board must changes its perceptions and expectations. The board must insist that the financial advisor help it gain a thorough understanding of all the valuation issues that impact a transaction ‐ including, for example, the appropriateness of the valuation methodologies and assumptions employed and the strategic implications of the acquisition or divestiture. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Investment Compliance Emerald Publishing

Enhancing the value of fairness opinions: Limiting risk in the post‐enron era

Pamela M. O’Neill
Journal of Investment Compliance , Volume 5 (2): 3 – Apr 1, 2004
Download PDF
3 pages

Loading next page...
 
/lp/emerald-publishing/enhancing-the-value-of-fairness-opinions-limiting-risk-in-the-post-Wq1uRGKyz1

References

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
1528-5812
DOI
10.1108/15285810410636190
Publisher site
See Article on Publisher Site

Abstract

The NASD and the SEC are looking into methods, fees, conflicts of interest, and other issues related to fairness opinions. The fairness opinion process as currently practiced is likely to be deemed inadequate, and as such will offer less protection to boards of directors. To protect the role of the fairness opinion process as a risk‐mitigating tool, the board must changes its perceptions and expectations. The board must insist that the financial advisor help it gain a thorough understanding of all the valuation issues that impact a transaction ‐ including, for example, the appropriateness of the valuation methodologies and assumptions employed and the strategic implications of the acquisition or divestiture.

Journal

Journal of Investment Compliance – Emerald Publishing

Published: Apr 1, 2004

Keywords: Financial institutions; Investments; Investment funds; Investors; Investments

There are no references for this article.