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Independent Experts' Reports

ASIC’s Moneysmart financial guidance1 describes an independent expert report as a report providing shareholders with unbiased advice on the pros and cons of a potential transaction. Independent expert reports may be used for:

  • Takeover bids
  • Compulsory acquisitions and buy-outs
  • Schemes of arrangement
  • Related party transactions
  • Capital reorganisations

The report is designed to evaluate and assess the fairness of the planned transaction and the implications of it proceeding or not proceeding. In many cases the report is required due to a transaction involving related parties or parties of influence because of the potential for conflicts of interest.

An independent expert report usually includes:

  • A summary of the proposed transaction
  • An analysis of the entities involved and associated businesses
  • A summary of the industries in which the relevant entities' businesses operate
  • The trading history of the entities involved
  • A summary of the benefits and disadvantages of the transaction
  • A valuation of the securities involved in the transaction, if relevant, (e.g. shares, units or other investments)
  • A comparison between the value of the securities and what you are being offered as an investor
  • The expert's opinion, the basis of their opinion and the method and assumptions used to reach their conclusions

Some companies may choose to commission an independent expert report even if they are not legally required to.

Breakaway Research personnel has experience in preparing experts reports and holds an Australian financial services (AFS) licence required to provide financial product advice,

Breakaway Research also has access to specialists if required, particularly associated with less common project types and jurisdictions.

1. https://www.moneysmart.gov.au/investing/shares/keeping-track-of-your-shares/independent-expert-report