Many of the REITs that are taken public in an IPO were formed with a roll-up of the real estate assets and an internalization of the management company. In REIT roll-up transactions, the value of contributed real estate assets is generally understood, as investors are usually comfortable with the well-established methodologies underlying real estate appraisals. The value of the management company, however, is less straightforward; and often becomes an area of inordinate focus in these transactions.
An independent fairness analysis and opinion helps with roll-up transactions and management company internalizations by providing a third-party view of the value of the consideration involved, and ultimately the fairness to existing shareholders.
Our globally ranked Opinions Practice rendered fairness opinions in the formation transactions as part of the IPO in six of the ten largest REIT IPOs in U.S. history.
