An Independent Expert’s Report (IER) provides independent and reliable advice to shareholders on certain transactions that a public company wishes to undertake. Shareholders can use the Report to help inform their decision to approve or reject the transaction during a Meeting of the Company.
An IER provides a detailed analysis of a transaction a company is planning, using various valuation techniques to evaluate the cost and benefit arising from that particular transaction.
The resulting Report then provides shareholders with our conclusion regarding the valuation of the transaction – how much is it actually worth? – and the fairness of the transaction – is it diluting existing shareholders at a fair price (i.e. what they can pay for a share right now), or not?
The need for an IER can come from Australian Securities Exchange (ASX) Listing Rules, the Corporations Act 2001, or ASIC guidance. If you fall into one of these categories, or are considering different types of transaction and want to know what sort of report you will need, please contact us to discuss your company’s specific needs.