As public M&A lawyers know well, fairness opinions are an integral part of the deal process in friendly acquisitions.
What U.S. cross-border lawyers may not know, however, is that Canadian market practice regarding fairness opinions recently experienced an evolution.
Whereas the Canadian approach to fairness opinions was previously more standardized, a series of critical court rulings has led to more varied approaches to fairness opinions based on situation-specific factors, including:
- transaction value;
- cost sensitivity;
- the potential for a shareholder challenge; and
- the federal, provincial or territorial corporations statute governing the transaction.
Writing in The M&A Lawyer (PDF, 186 KB) , we explore the current Canadian fairness opinion landscape for the benefit of U.S. dealmakers.
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