fairness opinion

Fairness Opinion

A report put together by qualified analysts or advisors providing to key decision makers an evaluation of and facts about a merger or acquisition.

Notes:

A fairness opinion serves as a document used for guidance in a merger, takeover, or acquisition. Basically, it's a professional opinion supported by collected data.

See also: Acquisition, Advisor, Analyst, Merger, Takeover

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Fairness opinion

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

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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.