Financial Advice Under More Scrutiny In M&A

Financial advice is a growing area of focus for target boards in M&A transactions and is increasingly in the spotlight in deal litigation.

Disputes implicating financial advisers are arising in connection with adviser conflicts of interest and the scope and disclosure of fairness opinions. Expert financial advice assists boards in fulfilling their responsibilities in overseeing the negotiation of M&A transactions and, when disclosed, that advice also assists shareholders in evaluating those transactions. However, recent developments are a reminder to directors to scrutinize carefully the advice they receive and the adequacy of the disclosure of that advice to shareholders.

Adviser Conflicts of Interest