Ask the Advisor – Q: What is a fairness opinion and do I need one?

Description

Abstract: This column explains how a fairness opinion assesses whether a transaction is fair to shareholders and others involved by comparing the deal with similar ones and evaluating any meaningful differences. Although buyers and sellers use these opinions to shield themselves from shareholder lawsuits, the article cautions that they are not foolproof against litigation, nor do they necessarily reflect the full value of a proposed deal.