Tuesday, February 05, 2008

"Fairness" Opinions: A New Service for Deloitte and Touche

Deloitte Financial Advisory Services (presumably the consulting arm of Deloitte and Touche) has begun offering fairness opinions in regard to mergers, acquisitions, divestitures and transactions where publicly-traded companies go private. Chris Riggeri of DFAS points out that Deloitte may be more independent than investment bankers and that the opinions provide some security to boards of directors seeking to satisfy due diligence expectations and increase safety from shareholder suits.
Riggeri points out that Deloitte has provided these services in Europe.

"Fairness" opinions are an interesting concept. If they become popular in M & A settings, the potential exists to expand to other situations--such as executive bonuses and stock options, early retirement packages and partner buyouts.


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