Solvency Opinions
Kroll’s Opinions practice is a globally recognized leader in solvency opinions. Over the last 20 years, we have rendered more than 1,400 solvency opinions with $10+ trillion in deal value.
A solvency analysis and opinion help companies and their boards of directors steer clear of fraudulent transfers, illegal dividends, distributions and stock buybacks. Solvency analysis also provides valuable insight as to the equity and cash flow cushion of the business.
Dividends and stock buybacks must be approved and effected in accordance with the laws of the jurisdiction of incorporation and must also conform to fraudulent transfer statutes.
A solvency opinion makes determinations as to whether:
- The company’s assets exceed its debts;
- The company should be able to pay its debts as they come due;
- The company is not left with unreasonably small assets or capital; and
- There is sufficient surplus to effect a distribution or stock buyback.
Solvency Advisory Services
A solvency analysis and opinion can enhance the company’s or board’s analysis of any leveraged transaction or contemplated distribution. The types of applicable transactions include:
- Spin-offs and split-offs
- Dividend recapitalizations
- Stock buybacks
- Leveraged buyouts
- Debt refinancings
- Intercompany restructurings
Kroll’s Opinions practice is a globally recognized leader in solvency opinions. Over the last 20 years, we have rendered more than 1,400 solvency opinions with $10+ trillion in deal value.
A solvency analysis and opinion helps companies and their boards of directors steer clear of fraudulent transfers ,illegal dividends, distributions and stock buybacks. Solvency analysis also provides valuable insight as to the equity and cash flow cushion of the business.
Dividends and stock buybacks must be approved and effected in accordance with the laws of the jurisdiction of incorporation and must also conform to fraudulent transfer statutes.
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