BUS 082 Lecture Notes - Lecture 23: Fairness Opinion, Issued Shares, Tender Offer

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 082
• Professor: Porterfield

Document Summary

The sell-side advisor works together with the seller and its legal counsel to conduct a thorough analysis of the price, structure, and conditionality of the final bids. Purchase price is assessed within the context of the first round bids and the target"s recent financial performance, as well as the valuation work performed by the sell-side advisors . The deemed binding nature of each final bid, or lack thereof, is also carefully weighed in assessing its strength. Often, the sell-side advisor recommends that the seller negotiates with two (or more) parties, especially if the bid packages are relatively close. Advisor seeks to maintain a level playing field so as not to advantage one bidder over another and maximize the competitiveness of the final stage of the process. During these final negotiations, the advisor works intensely with the bidders to clear away any remaining confirmatory due diligence items (if any.