Significant benefits aside from legal liability

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Question: A fairness opinion is very valuable and provides significant benefits aside from legal liability. A fairness opinion expert will not try and convince the shareholders that the deal is necessary or to depict the complete value of the company. They will gather financial data and even account for synergy when giving their opinion on the targeted company's valuation. These experts are very knowledgeable regarding business valuations and can determine if the financials of this target company align with the proposed offer. I don't believe most shareholders with minimal voting power would go so in depth into the proposed company or understand financials enough to complete their own valuation. This expert report would give shareholders clarity and possible confidence in the merger or acquisition. However, even as unethical behaviors may occur by the fairness expert due to them being paid for this opinion, they still need to have financial data to back up their findings.

Reference no: EM133611986

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