Fairness opinion is an opinion about the fairness of
the possible financial conditions of a corporative transaction, as an
acquisition, fusion or sale of a part or the total of a business for the
shareholders of the accordingly entity.
These reports are often requested by the managers or other entity fiduciary,
with the aim of showing that they are acting according the interests of all the
In some countries, it is required by law or
regulation for certain type of transaction.
To provide a reasonableness report of a transaction, from a financial
perspective an assessment analysis or appraisal is generally needed.
These assessments are developed according to the
International valuation standards (IVS) and other statements of the IVSC, for
example, the Code of ethics for professional appraisers or the orientation on
valuation methods foreseen in the technical information documents.
Purchase accounting - Purchase Price Allocation
The term "Purchase
(PPA) is a concept
with an asset
control of another
company (through a
generally in the
context of a
assign the paid
Price between the
different assets and
identified of the
acquired company, in
such a way that the
the paid Price and
the reasonable value
of these assets and
liabilities will be
That is to say, a
PPA consists of
assigning the Price
of a transaction
reasonable value of
the different groups
of acquired assets,
to reflect the
of the purchaser
between tangible and
The PPA process
often entails the
intangible assets in
of the purchaser
The Transfer Pricing is part of the globalization and affects large corporations
as well as small enterprises with international bounds.
A functional, economic and financial analysis development.
Companies searches and comparable contracts.
Previous studies for enterprises begging operations with associates