Solvency Opinions
A solvency analysis and opinion helps companies and their boards of directors steer clear of fraudulent transfers and illegal dividends or distributions.
Contact UsState 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:
- 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.
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.
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
- Corporate spin-off transactions are often done to release shareholder value and achieve other business purposes
- Dividend recapitalizations
- Solvency opinions from independent financial advisors are often written into credit agreements as a condition of closing
- Leveraged buyouts
- Debt refinancings
- Intercompany restructurings
- Large stock buybacks
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Dating App Grindr Is Set to Go Public Via a De-SPAC Transaction Valued at $2.1 Billion. The Duff & Phelps Opinions Practice of Kroll Rendered a Fairness Opinion to Tiga Acquisition Corp. in Connection with Its Proposed Merger with Grindr Group, LLC.
Duff & Phelps, A Kroll Business, Provided a Fairness Opinion to LAACO, Ltd., in Connection With Its Sale to CubeSmart for Approximately $1.7 Billion
Duff & Phelps, A Kroll Business, Provided a Fairness Opinion to Capvis AG in Connection With the Continuation Vehicle Transaction Co-led by Affiliates of Committed Advisors and Eurazeo
has been involved in a Continuation Vehicle Transaction by
Duff & Phelps, A Kroll Business, Provided Solvency Opinions to the Boards of Directors of L Brands and Victoria's Secret & Co.
renamed to
has completed the spin-off of
Kroll's Consumer Investment Banking Team Advised Primanti Bros. on Its Sale to Authentic Restaurant Brands
Duff & Phelps, A Kroll Business, Advised SCR Medical Transportation on Its Sale to Beacon Mobility, a Portfolio Company of Audax Private Equity
has been acquired by
a portfolio company of
Duff & Phelps Provided a Solvency Opinion to the Board of Directors of CPower Inc.
a portfolio company of
Duff & Phelps Rendered a Fairness Opinion to Landmark Infrastructure
has acquired certain assets from Landmark Dividend LLC.
Dating App Grindr Is Set to Go Public Via a De-SPAC Transaction Valued at $2.1 Billion. The Duff & Phelps Opinions Practice of Kroll Rendered a Fairness Opinion to Tiga Acquisition Corp. in Connection with Its Proposed Merger with Grindr Group, LLC.
Duff & Phelps, A Kroll Business, Provided a Fairness Opinion to LAACO, Ltd., in Connection With Its Sale to CubeSmart for Approximately $1.7 Billion
Duff & Phelps, A Kroll Business, Provided a Fairness Opinion to Capvis AG in Connection With the Continuation Vehicle Transaction Co-led by Affiliates of Committed Advisors and Eurazeo
has been involved in a Continuation Vehicle Transaction by
Duff & Phelps, A Kroll Business, Provided Solvency Opinions to the Boards of Directors of L Brands and Victoria's Secret & Co.
renamed to
has completed the spin-off of
Kroll's Consumer Investment Banking Team Advised Primanti Bros. on Its Sale to Authentic Restaurant Brands
Duff & Phelps, A Kroll Business, Advised SCR Medical Transportation on Its Sale to Beacon Mobility, a Portfolio Company of Audax Private Equity
has been acquired by
a portfolio company of
Duff & Phelps Provided a Solvency Opinion to the Board of Directors of CPower Inc.
a portfolio company of
Duff & Phelps Rendered a Fairness Opinion to Landmark Infrastructure
has acquired certain assets from Landmark Dividend LLC.