Fairness Opinions in M&A

A fairness opinion is a professional evaluation, often provided by an investment bank or financial advisor, that assesses whether the financial terms of a merger or acquisition are reasonable. It helps the board of directors decide if a deal is fair to shareholders, based on market data and valuation methods. Although it doesn’t guarantee a successful transaction, it supports transparency and informed decision-making, reducing the risk of disputes or legal issues afterward. Essentially, it reassures stakeholders that the deal makes financial sense and is in their best interests.