A fairness opinion helps the board document that it has fulfilled its duty of care and helps protect minority shareholders. The opinion is based on valuation analyses.
Related terms
ValuationEstimating the monetary value of a company, share, asset or liability at a specific date and for a specific purpose.Mergers and acquisitions (M&A)The general term for mergers of companies and for one company acquiring or disposing of another company or business line.Completion accountsFinancial statements prepared as at the closing date of an acquisition, through which the final price is set by net debt and working capital adjustments.Cost of capitalThe minimum rate of return investors expect from an investment in return for the risk they take.Discounted cash flow (DCF)A valuation method based on discounting the free cash flows an asset or company will generate in the future to the present using an appropriate discount rate.Earn-outA mechanism under which part of the purchase price is paid depending on the target company reaching certain performance targets after closing.
Last updated: October 22, 2026 · This definition is for general information only.