fairness opinion

Fairness opinion

An investment banker's professional opinion as to the price an acquiring firm is offering in a takeover or merger.

fairness opinion

An independent opinion characterizing the fair value of a firm's stock. A fairness opinion is frequently obtained by a majority owner of a company that is attempting to buy out the interests of minority shareholders. For example, Royal Dutch Petroleum, the 70% owner of Shell Oil, sought a fairness opinion from Morgan Stanley in an attempt to set a price on the shares it wished to purchase from Shell's minority stockholders. See also squeeze-out.
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He said that doing these two things would distinguish fairness opinions (whether provided by appraisers or others) as carrying a fiduciary responsibility, a position that is reasonable given the purpose of the fairness opinion.
receiving a positive fairness opinion from E&Y;
This fee is often a fairness opinion fee (FO fee) to be paid to the IB when it issues a fairness opinion.
In the wake of that decision, corporations and directors increasingly have been advised to obtain fairness opinions from independent providers and told that using only the same bankers that are doing the deal to provide a fairness opinion may leave the board members relying on a biased fairness opinion, and thus exposed to lawsuits.
Yes, we would get a fairness opinion, but not be restricted to only firms not involved in the transaction," noted the CFO of a midcap financial services firm (respondents were provided anonymity on any comments but were asked to identify their company size and industry).
D'Cunha's expertise to learn more about the fairness opinion process as well as an attorney's role in investment banking transactions.
JPMorgan also provided a fairness opinion for Trizec Properties.
To accomplish this, an often overlooked risk-management tool, known as a fairness opinion, can help, says Jeffrey M.
Also, the article may leave some readers with the impression that obtaining the AICPA's ABV accreditation makes one competent to offer fairness opinion services.
If the question were squarely presented to a court, it is not clear that a court would find sufficient nexus between a capital transaction and a fairness opinion to require capitalization.
The independent analysis within a fairness opinion delivers the evidence that a board of directors has fulfilled its fiduciary duty when considering a financial transaction.
These costs include professional or other fees incurred to structure the proposed transaction, to obtain regulatory or shareholder approval and to secure an appraisal, written evaluation or fairness opinion related to the transaction.