Paper Title
Analysis of Variables Influencing The Valuation Difference of Target And Acquirer Company’s In Fairness Opinions

This research analyzes relative valuation differences in fairness opinions (FOs) based on a data set ranging from 2008-2013. The analysis highlights that DCF valuations are superior to multiple valuations in regards to the valuation difference between target and acquirer companies. These differences are smaller for DCF valuations. For DCF valuations, where the target is relatively large and multiple fairness opinions are used, the valuation difference is further narrowed down. Excepting smaller valuation differences as a proxy for the quality and usefulness of a fairness opinion, the paper highlights variables that increase the quality. It shows furthermore that FOs can be more than just a legal safeguard for managers; they can lower information asymmetries. Keywords - Mergers and Acquisitions, Finance, Fairness opinions, Business