When one company tries to take over another company, the target company's board of directors might hire an outside company to issue a fairness opinion. A fairness opinion is a letter (typically issued by an investment bank or a company that specializes in valuation) that says the merge price is fair.

The target's board of directors would get a fairness opinion to protect themselves from a lawsuit: if the target's shareholders don't like the terms of the deal, they could sue the board members for not doing more to get a better price or more bids. By hiring an expert to issue a fairness opinion, the board members are protected.

If you'd like to see the fairness opinion that Morgan Stanley issued when Merck merged with Schering-Plough, click on the link below and go to "Annex D" in that document:
[ Ссылка ]

Companies sometimes hire a firm to issue a fairness opinion when companies make divestitures.—
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