Opinions of Value

An opinion of value is an independent statement made by a financial expert about the fairness of the terms in a specific financial transaction.

 Opinions of value are used in corporate transactions, where there is a close relationship between the parties, and also between unknown parties. For example, if a publicly traded company makes a public buyout offer, the opinion of value is necessary to ensure that the financial terms and conditions are fair for the investing public.

An independent financial advisor is indispensible to issue an opinion of value. Additionally, this advisor must have the necessary experience to analyze the financial terms of the transaction using methods accepted by the financial community.