Fairness opinion

Example Fairness Opinions

SEC filings relating to the 2009 merger of Merck & Co., Inc. and Schering-Plough Corporation:

A fairness opinion is a professional evaluation by an investment bank or other third party as to whether the terms of a merger, acquisition, buyback, spin-off, or privatization are fair.[1] It is rendered for a fee.[2][3] They are typically issued when a public company is being sold, merged or divested of all or a substantial division of their business. They can also be required in private transactions not involving a company that is traded on a public exchange,[4] as well as in circumstances other than mergers, such as a corporation exchanging debt for equity.[5] Some of the specific functions of a fairness opinion are to aid in decision-making, mitigate risk, and enhance communication.[6]

  1. ^ ""About Fairness Opinions | JPKatz", JPKatz.com". Archived from the original on 2010-12-13. Retrieved 2009-12-02.
  2. ^ ""Definition, Fairness Opinion", Investorwords.com". Archived from the original on 2007-12-31. Retrieved 2008-01-02.
  3. ^ Ralph Ward, "A Briefing On Fairness Opinions", Inc.com (February 2001).
  4. ^ ""Fairness Opinion in private transactions", Blackpartners.pl". Archived from the original on 2013-12-03. Retrieved 2013-12-02.
  5. ^ Jill R. Goodman[1]New York Times Dealbook
  6. ^ Ferro, John; Benoit, Bryan. "Raising the Bar for Fairness Opinions". Transaction Advisors. ISSN 2329-9134.