Selected Recent Engagements
VRC is widely respected for our depth of industry knowledge. We are proud to share a select list of recently completed engagements and thank our clients for allowing us to serve their needs.
VRC provided a fairness opinion to the board of directors of Advantage Sales & Marketing, Inc. (now Advantage Solutions.)
VRC provided a fairness opinion to the board of directors of AmSafe, a portfolio company of Berkshire Partners and Greenbriar Equity Group LLC, in connection with the sale of the company to TransDigm Group Inc.
VRC provided a fairness opinion to the board of directors of Covalence Specialty Materials Holding Corp.
VRC provided a buy-side fairness opinion to the company’s board of directors in connection with its acquisition of Storage Financial Europe.
VRC advised the Farmer Brothers’ board of directors in connection with the acquisition of Boyd’s Coffee.
VRC provided a fairness opinion to the Trustees of the Indenture and the Board of Directors of Granite Broadcasting related to the sale of WPTA-TV in Fort Wayne, Indiana.
VRC provided a fairness opinion to GNC in connection with the sale of preferred shares to prospective investors.
VRC provided a fairness opinion to Gradient Resources in connection with a stock transaction.
K1 Ventures acquired a majority interest in Helm Holding Corporation; VRC provided a fairness opinion to the board of directors of Helm Holding Corporation.
VRC provided a fairness opinion in connection with a corporate transaction.
VRC provided fairness opinions in connection with an all-stock merger of two wholly-owned subsidiaries of Huntsman Corporation for the benefit of the board of managers of each of the respective subsidiaries.
iAP Worldwide Services completed a comprehensive recapitalization; VRC provided financial advisory services and a fairness opinion to the board of directors.
VRC completed a fairness opinion for the Infinity Healthcare, Inc. ESOP in connection with its sale to Emcare, Inc., a subsidiary of Envision Healthcare Corporation.
We provided a fairness opinion to the board of directors of Intelligrated and to the respective advisory boards of the private equity firm.
Fairness and Solvency Opinion
VRC provided both a fairness opinion and solvency opinion for the benefit of KCI’s board of directors and its lenders in connection with a recapitalization. Kinetic Concepts, Inc. is a global provider of therapeutic specialty beds and devices.
VRC provided a fairness opinion in connection with Kimpton Hotel & Restaurant Group’s restructuring.
VRC provided a fairness opinion to support the sale of substantially all of the assets of Meta TV to an affiliate of Comcast Corporation and Cox Communications, which was addressed to the board of directors and the special committee of the board.
VRC rendered a fairness opinion to the board of directors of Milacron in connection with a refinancing of the company.
Fairness and Solvency Opinion
VRC provided a solvency opinion in connection with a leveraged recapitalization. We also provided a fairness opinion in support of the sale of the company.
POET consolidated nine ethanol plants into POET Biorefining, LLC. VRC provided a fairness opinion to the holders of equity interests in POET Biorefining, LLC.
VRC provided a fairness opinion to ONE Industries and Transom Capital in connection with the acquisition of Bravo Sports.
VRC provided a fairness opinion in connection with a change of control transaction.
VRC acted as the financial advisor to the board of directors of American Heritage Arms, Inc., owner of Remington, and issued a fairness opinion on the acquisition of Bushmaster Firearms.
VRC provided a fairness opinion in connection with the recapitalization of Resun Holdings, Inc. for the benefit of the board of directors of Resun and its financial investor.
VRC provided a fairness opinion in connection with Scripps’ sale of United Media Licensing to Iconix Brand Group.
The plastics division of Trostel SEG, Inc., a subsidiary of Albert Trostel & Sons, Co., has been acquired by Dickten & Masch, LLC; VRC provided a fairness opinion to the boards of directors of Albert Trostel & Sons, Co., and Trostel SEG, Inc. in connection with the transaction.
VRC provided a fairness opinion for Turning Point’s acquisition of Vapor Supply.
Fairness and Solvency Opinions
VRC provided both a fairness and solvency opinion for the board of directors in connection with various strategic alternatives considered by the board to maximize shareholder value.
VRC rendered a fairness opinion to the board of directors of Vought Aircraft Industries, Inc. and its financial investor advisory committee in connection with its acquisition of The Aerostructures Corporation.
VRC has issued over 1,000 fairness, solvency and capital adequacy opinions for transactions ranging in value from $10 million to $10 billion in market capitalization.
A fairness opinion provides a comprehensive opinion that fulfills a critical role in supporting the financial fairness of a merger, acquisition or other related corporate transaction. Typically provided by a third-party expert, boards of directors will seek a fairness opinion as part of discharging their fiduciary duties of loyalty and care by acting on an informed basis. Fairness opinions may also be provided in connection with corporate transactions in which credit agreements or bond indentures place restrictions on transactions involving related parties.
VRC has prepared fairness opinions for boards of directors, corporate legal advisors, private equity firms, institutional investors, fiduciaries, buyers and sellers, private company business owners, limited partners and trustees.
Transactions That Trigger a Need for Fairness Opinions
Typical transactions triggering the need for a fairness opinion include:
- Synergistic mergers or acquisitions; Divestitures
- Tender offers including leveraged buyout (LBO), management buyout (MBO), or other going private transactions
- Large block stock purchases; Private placements; Down-round financings
- Related party transactions; Transactions with competing offers; Transactions restricted by a bond indenture
- Dividend recapitalizations; Reorganizations; Hostile takeovers
When a transaction involves related parties, such as a director or company, a fairness opinion may be needed to demonstrate that the transaction is completed on terms that are similar to arm’s length transactions. In addition, some bond indentures may require a fairness opinion for certain types of transactions.
Benefits of Fairness Opinions in Deal Making
As part of a fairness opinion, an analysis of a proposed acquisition target may provide board members with context and may highlight potential implications that others, such as those who may be incentivized to execute the deal, may overlook.
Beyond a general legal consulting arrangement, an independent fairness opinion can potentially provide added tangible protection to fiduciaries.
A fairness opinion can help demonstrate to shareholders and external stakeholders that board members are exercising prudence and care when contemplating a transaction.
Fairness Opinion Process
Preparing a fairness opinion involves both a qualitative and quantitative analysis. The qualitative analysis focuses on reviewing the facts and circumstances surrounding the prospective transaction. Conducting a fairness opinion requires interviewing the company’s management and legal advisors, reviewing certain legal documents, analyzing historical financial statements and reviewing business strategies and financial projections.
The quantitative analysis may include the following approaches:
- Publicly traded market comparable analysis
- Precedent transaction analysis
- Discounted cash flow (DCF) analysis
- Leveraged buyout (LBO) analysis
- Break-up analysis
- Review of historical stock price trading history
- Study of premiums paid for similar companies
When To Seek a Fairness Opinion
Obtaining a fairness opinion early in the deal process is always advisable, but it becomes an important element in assisting boards of directors to fulfill their fiduciary duties.
Deal-related concerns may not reveal themselves early in the deal-making process; companies then find themselves with time and budget constraints to seek an opinion provider and, as a result, solicit an opinion from the investment bank leading the deal. Scrutiny has increased regarding bankers issuing fairness opinions on a transaction in which they also receive a significant contingent fee, and in some instances, provide financing to the potential buyers. Shareholders may perceive this as a conflict of interest and if the opinion is challenged it may not hold up in court.
Why Work With VRC?
VRC’s fairness opinions offer judgment beyond modeling – meaning that we develop an objective analysis that assists boards in fulfilling their fiduciary duties.
As one of the first providers of opinions since the 1980’s, VRC has issued over 1,000 fairness, solvency and capital adequacy opinions for transactions ranging in value from $10 million to $10 billion in market capitalization.