Fairness Opinion (Mergers and Acquisitions)

When one company tries to take over another company, the target company's board of directors might hire an outside company to issue a fairness opinion. A fairness opinion is a letter (typically issued by an investment bank or a company that specializes in valuation) that says the merge price is fair.
The target's board of directors would get a fairness opinion to protect themselves from a lawsuit: if the target's shareholders don't like the terms of the deal, they could sue the board members for not doing more to get a better price or more bids. By hiring an expert to issue a fairness opinion, the board members are protected.
If you'd like to see the fairness opinion that Morgan Stanley issued when Merck merged with Schering-Plough, click on the link below and go to "Annex D" in that document:
www.sec.gov/Ar...
Companies sometimes hire a firm to issue a fairness opinion when companies make divestitures.-
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
-
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
eepurl.com/dIaa5z
-
SUPPORT EDSPIRA ON PATREON
* / prof_mclaughlin
-
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
edspira.thinki...
-
LISTEN TO THE SCHEME PODCAST
Apple Podcasts: podcasts.apple...
Spotify: open.spotify.c...
Website: www.edspira.co...
-
GET TAX TIPS ON TIKTOK
/ prof_mclaughlin
-
ACCESS INDEX OF VIDEOS
www.edspira.co...
-
CONNECT WITH EDSPIRA
Facebook: / edspira
Instagram: / edspiradotcom
LinkedIn: / edspira
-
CONNECT WITH MICHAEL
Twitter: / prof_mclaughlin
LinkedIn: / prof-michael-mclaughlin
-
ABOUT EDSPIRA AND ITS CREATOR
www.edspira.co...
michaelmclaugh...

[@robertcasey1708]

Thank you, I like the clarity of your explanations and engaging tonality.

[@tarekalsherif57]

Thank you Michael

[@chasemorello60]

✍