Fairness Opinions & Valuations

It is a written, affirmative determination by the provider that a transaction is fair/unfair and reasonable/unreasonable to a particular stakeholder.

Any number of factors in transactions involving both public and private companies can trigger the need for a fairness opinion. The JSE Listings Requirements and/or the TRP Code may require an independent expert or fairness opinion in the following instances:

  • Related party transactions
  • Engaging in transactions with related parties, where:
    • Shares are issued for cash at a discount
    • Options or convertible securities are issued or granted at a discount
    • Shares are issued at market value, but the company provides financial assistance
    • Securities are repurchased at a premium
  • Delisting from the JSE
  • Affected transactions

 
Company directors, shareholders or involved parties with a fiduciary responsibility, minority shareholders, shareholders involved in disputes, investors, regulators, courts, tax authorities or creditors will at times require an independent, objective expert to provide a valuation on a business, an asset, or a fairness opinion on a transaction.

How can PSG Capital help?

PSG Capital has the required expertise, resources and valuations experience to provide a thorough and trustworthy independent expert valuation. Our dedicated team works diligently to provide our clients with an efficient turnaround time within the tight deadlines whilst maintaining the highest standards that a service of this nature requires.