Fairness opinions: Don’t close a transaction without one

Description

Abstract: In a fairness opinion, a qualified professional confirms that the terms of a proposed transaction are “fair” from a financial perspective. These opinions can facilitate transactions, reduce the odds of disputes among the parties and provide legal protection in the event of litigation. This article discusses who should offer fairness opinions and the variety of transactions in which they can benefit both buyers and sellers. A sidebar describes the analyses used in an opinion that are similar to three common valuation methodologies.