What is commonly included in a fairness opinion report?

A fairness opinion report is designed to provide an independent analysis regarding the financial terms of a business transaction, primarily to assess whether the pricing of the deal is fair from a financial perspective. The primary focus of the report is on determining if the valuation at which the transaction is structured is reasonable and justifiable based on market comparisons, precedent transactions, and the specifics of the companies involved.

In this context, the analysis of the pricing of the deal is integral to understanding the financial implications and whether shareholders are being treated equitably. It ensures that the parties involved have a clear understanding of whether the transaction price reflects the true value of the business, taking into account various financial metrics and market conditions.

While elements like valuation of future projections, assessment of market conditions, and historical performance metrics can play a role in the overall analysis, the specific focus of a fairness opinion is on the pricing aspect, which aligns with the necessity for an impartial assessment of the deal's financial fairness.