We are investigating the fairness of the $26.00 per share in cash pursuant to which Avantax, Inc. (Nasdaq: AVTA) (“Avantax”) has agreed to be sold to Cetera Financial Group (“Cetera”).
If you remain a Avantax shareholder and question the fairness of the price, you may contact our firm to discuss your legal rights at no charge by completing and submitting the form below.
Why is there an investigation?
On September 11, 2023, Avantax announced that it had agreed to be sold for $26.00 per share in cash to Cetera.
“We are investigating whether the Avantax Board of Directors acted in the best interests of Avantax shareholders in approving the sale,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether the price agreed upon is fair to Avantax shareholders, as well as whether all material information regarding the transaction has been fully disclosed.”
Notably, according to an analysis of Wall Street price targets for Avantax in the last 90 days published on Seeking Alpha, there is an average price target of $29.00 per share, which indicates that several Wall Street analysts think the deal price is too low.
The deal price is also below Avantax’s 52-week high of $30.23 per share.
Finally, a discounted cash flow analysis of Avantax by Chatool Investments published on Seeking Alpha on June 25, 2023, yielded a fair value of $31 per share. This is slightly above the $30.00 per share that Avantax paid to repurchase and retire approximately 8.3 million shares of its common stock in a Dutch Auction tender offer commenced on January 27, 2023, and ended on February 24, 2023.