A solvency analysis and opinion helps companies and their boards of directors steer clear of fraudulent transfers and illegal dividends or distributions.
State laws impose certain duties on boards of directors with respect to dividends, distributions and other transfers.
Dividends must be paid from surplus, and cannot leave the company insolvent or with insufficient capital.
A solvency opinion makes determinations as to whether, after giving effect to a transaction:
These determinations arise from fraudulent transfer statutes and dividend prerequisites in state laws. Solvency analysis also provides a board and company management with valuable insight as to the equity and cash flow cushion with respect to its ongoing business.
Duff & Phelps Opinions practice is a globally recognized leader in solvency opinions. Since 2005, we have rendered more than 2,376 fairness and solvency opinions for transactions with an aggregate deal value of over $7 trillion.
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:
Kroll’s investment banking practice has extensive experience in M&A deal strategy and structuring, capital raising, transaction advisory services and financial sponsor coverage.
Kroll professionals have advised hundreds of companies, investors and other stakeholders at all stages of distressed transactions and special situations.
As the largest independent valuation advisory firm, Kroll brings extensive industry experience to the secondary market for alternative investments to address the transfer needs of general partners and limited partners.
Kroll's Corporate Finance ESOP/ERISA practice is a leading corporate finance and valuation advisor to companies and ERISA fiduciaries.
Dedicated coverage and access to M&A deal-flow for financial sponsors.
Kroll has extensive experience raising capital for middle-market companies to support a wide range of transactions.
Kroll’s Transaction Advisory Services platform offers corporate and financial investors with deep accounting and technical expertise, commercial knowledge, industry insight and seamless analytical services throughout the deal continuum.
Kroll, the leading independent provider of global risk and financial advisory solutions, today announced that it ranked No. 1 for the total number of fairness opinions in the U.S., EMEA (Europe, Middle East, and Africa), Australia and globally in 2023, as reported by LSEG (formerly known as Refinitiv).
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