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Series 79: M&A, Tender Offers & Restructuring
Series 79 practice questionmediumFairness Opinions

What is a fairness opinion intended to address?

  1. AWhether the consideration in a transaction is fair from a financial point of view✓ Correct answer
  2. BWhether the merger is certain to close legally
  3. CWhether the buyer can refinance debt later
  4. DWhether the target will outperform peers after closing
Explanation

Why AWhether the consideration in a transaction is fair from a financial point of view

Whether the consideration in a transaction is fair from a financial point of view A fairness opinion is a financial analysis delivered to a board, usually regarding the transaction consideration to a specified constituency. It does not guarantee value creation or legal compliance.

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