Fairness Opinion

The fairness opinion is something like a notary public's seal for a major deal and the price at which it occurs. It's "almost like an insurance policy, telling the shareholders that what the board is doing is fair," observes Barry Steiner of the Florida firm Capitalink. And, like an insurance policy, a fairness opinion helps protect boards from legal second-guessing on their decisions after they've been made.

The fairness opinion is a black/white finding, stating either that the deal as presented seems fair or unfair, with no shadings in between. But the way an opinion is assembled, and how it's then reviewed by the board, can make a real difference in how well it stands up to legal challenge.

Fairness opinions in transactions give decision makers the necessary valuation information while offering confidence that they used proper business judgment in making a decision for the parties they represent.  MHP regularly prepares fairness opinions for private companies for their specific uses such as acquisitions and divestitures and ESOP transactions.  The independence and reliability of our opinions have been developed through our valuation experience in a wide variety of industries and our independent perspective.  All our opinions are based upon thorough research and meticulous analysis.  Our fairness opinions provide the necessary assurance and protection for all of our clients and their businesses and are based upon our expertise, integrity, and a strictly independent perspective.