RE:RE:RE:Financial Advisor There could be a few reasons why a mining exploration company may set up a Special Committee and hire a financial advisor, other than for a buyout. But none of these really apply to LME and as their focus is on selling for cash so the negotiation and approval of a buyout appears to me to be the most likely. Here are a few possibilities other than buyout:
1. Strategic Decision-Making: The company may be considering a strategic partnership, joint venture, or merger with another company. In such cases, setting up a Special Committee and hiring a financial advisor can help evaluate the potential benefits and risks of these opportunities.
2. Capital Raising: The company may be exploring options for raising capital to fund its exploration activities or expand its operations. A financial advisor can provide guidance on different fundraising options, such as issuing equity or debt, and help negotiate favorable terms.
3. Business Restructuring: If the company is undergoing internal changes like a restructuring, divestiture of assets, or spin-off of a subsidiary, a Special Committee and financial advisor can ensure the process is carried out effectively and in the best interests of the company and its shareholders.
4. Valuation and Investor Relations: Sometimes, a company may engage a financial advisor to conduct a valuation of its assets or business. This can be useful for attracting potential investors, securing financing, or enhancing investor relations by providing accurate and reliable information about the company's value.