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Valuations & Fairness Opinions

Companies require independent assessments of their value in a wide range of circumstances: to reorganize family-controlled businesses; structure, implement or unwind executive participation plans; position the company for a public or private equity issue; redeem shareholders’ interests; resolve shareholder disputes; and acquire or merge with another company.

Definition:

[Valuation] The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.

	For example, an analyst valuing a company may look at the company's management, the composition of its capital structure, prospect of future earnings, and market value of assets. Judging the contributions of a company's management would be more of a subjective valuation technique, while calculating intrinsic value based on future earnings would be an objective technique. [Fairness Opinion] A report put together by qualified analysts or advisors providing to key decision makers an evaluation of and facts about a merger or acquisition. A fairness opinion serves as a document used for guidance in a merger, takeover, or acquisition. Basically, it's a professional opinion supported by collected data. Source: www.Investopedia.com