fairness opinion investment & finance definition
A
valuation of a merger, a joint venture, or some other financial arrangement or
investment by an independent organization. Typically, fairness opinions are
written by investment banks or other financial advisors who are hired by
companies to provide an independent opinion about a merger and the price being
paid.
See fairness opinion in Wall Street Words
An independent opinion characterizing the fair value of a firm's stock. A fairness opinion is frequently obtained by a majority owner of a company that is attempting to buy out the interests of minority shareholders. For example, Royal Dutch Petroleum, the 70% owner of Shell Oil, sought a fairness opinion from Morgan Stanley in an attempt to set a price on the shares it wished to purchase from Shell's minority stockholders. See also
squeeze-out.
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