Series 79 practice questionmediumFairness Opinions
Which disclosure is required in a fairness opinion delivered to a target board in a merger?
- AA prediction of the post-merger stock price
- BAny material relationships between the financial advisor and parties to the transaction✓ Correct answer
- CA detailed pro forma income statement for the combined company
- DThe vote tally of the board's approval
Explanation
Why B — Any material relationships between the financial advisor and parties to the transaction
Material relationships must be disclosed to inform the board of potential conflicts of interest. The trap is to focus on speculative or internal board details rather than required disclosures.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 995+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related M&A, Tender Offers & Restructuring questions
- In a merger, which mechanism is commonly used to resolve disputes over earnout achievement post-closing?
- A private equity firm is evaluating an LBO where the target company has $50 million EBITDA, $400 million debt capacity…
- A merger agreement grants the initial bidder the right to match any superior proposal received by the target. What is…
- Under Rule 14e-1(c) of the Williams Act, how soon after expiration of a successful tender offer must the bidder pay for…
- Which company characteristic most enhances debt capacity in an LBO structure?
- Which of the following is an example of a white knight defense?
- Which of the following is most likely to be excluded (carved out) from the definition of a Material Adverse Change…
- A target company amends its shareholder rights plan to lower the triggering threshold from 20% to 10% during a hostile…