Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Fair Value

Definition

A standard of value that is similar to fair market value, but no discounts are applied, such as discounts for lack of control or lack of marketability.

See Also

Book value, fair value, market value.

Tips

Fair value is the standard of value most often used in a lawsuit concerning the rights of dissenting shareholders when determining the value of business. An appraisal right is the primary right that minority shareholders have in a sale.

Related Resources

Business Valuation Standards of Value & Fair Market Value

Business Valuation Methods in a Nutshell

Is there a difference between an appraisal and a valuation?