SECONDARY & BACKSTOP OPINIONS
A secondary/backstop opinion is another fairness opinion which provides extra legal protection to boards of directors. This opinion should be provided by an independent third party who does not have an advisory role in the transaction and is free of all conflicts of interest. When the transaction advisor is the sole provider of the fairness opinion, the validity of their fairness opinion may be questionable because of the success fee received for the transaction. Thus, the legal protection of the board of directors is put in jeopardy. As a result, more boards of directors and legal counsels engage Houlihan as the unconflicted, independent provider of secondary fairness opinions.
The Houlihan name is synonymous with independence and valuation expertise. Please contact Andrew Smith, president, to confidentially discuss potential fairness transactions.