Solvency Opinions

A solvency analysis and opinion helps companies and their boards of directors steer clear of fraudulent transfers and illegal dividends or distributions.

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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:

  • 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 2,178 fairness and solvency opinions for transactions with an aggregate deal value of over $6 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
  • Dividend recapitalizations
  • Leveraged buyouts
  • Debt refinancings
  • Intercompany restructurings
  • Large stock buybacks
Related Team

Connect with us

Christopher Janssen
Chris Janssen
Managing Director and Global Head of Transaction Opinions
Fairness and Solvency Opinions
Chicago
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Bob Bartell
Robert A. Bartell, CFA
President, Corporate Finance
Corporate Finance and Restructuring
Chicago
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Corey Bleil
Corey Bleil
Managing Director
Fairness and Solvency Opinions
New York
Phone
Elyse Bluth
Elyse Bluth
Managing Director
ESOP and ERISA Advisory
Chicago
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Andrew Capitman
Andrew Capitman
Managing Director
Fairness and Solvency Opinions
New York
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Sheryl Cefali
Sheryl Cefali
Managing Director
Fairness and Solvency Opinions
Los Angeles
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Jeff Gordon
Jeff Gordon
Managing Director
Fairness and Solvency Opinions
Chicago
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David Herr
David Herr
Managing Director
Fairness and Solvency Opinions
Philadelphia
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Todd Kaltman is a managing director at Duff & Phelps.
Todd Kaltman
Managing Director
Fairness and Solvency Opinions
Los Angeles
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Mark Kwilosz
Mark Kwilosz
Managing Director
Fairness and Solvency Opinions
Chicago
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David Lee
David Lee
Managing Director
Fairness and Solvency Opinions
New York
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David Rowe | Transaction Opinions | Kroll Chicago
David Rowe
Managing Director
Fairness and Solvency Opinions
Chicago
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Jeffrey Schiedemeyer
Jeff Schiedemeyer
Managing Director
Fairness and Solvency Opinions
Chicago
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David Turf
David Turf
Managing Director
Fairness and Solvency Opinions
Chicago
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