Solvency Opinions

Kroll’s Opinions practice is a globally recognized leader in solvency opinions. Since 2005, we have rendered more than 1,341 solvency opinions with an aggregate deal value over $10 trillion.

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Ranked no. 1 for U.S., EMEA and Global Fairness 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 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.

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

Frequently Asked Questions

A solvency opinion is a collection of determinations on the valuation, capitalization, and cash flow generating ability of an entity immediately before and immediately following a transfer of assets and/or liabilities, dividend, stock buyback or a leveraged transaction.
Solvency opinions are designed to assist boards of directors in determining the legality of a proposed distribution or stock buyback.

Solvency opinions are not:

Accounting or tax opinions
Fairness opinions
Business valuation opinions, although solvency analysis includes valuation analysis

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Chris Janssen

Chris Janssen

Managing Director and Global Head of Transaction Opinions

Transaction Opinions

Chicago

+1 312 697 4643 Chris Janssen

Bob Bartell, CFA

Vice Chairman and Managing Director

Chicago

+1 312 697 4654 Bob Bartell, CFA

+1 2128719937 Corey Bleil

Elyse Bluth

Managing Director, Transaction Opinions

ESOP and ERISA Advisory

Chicago

+1 312 697 4600 Elyse Bluth

+1 212 871 2000 Andrew Capitman

+1 312 697 4640 Jeff Gordon

+1 215 430 6000 David Herr

+1 424 249 1650 Todd Kaltman

+1 312 697 4677 Mark Kwilosz

David Lee

Managing Director and Head of EMEA Transaction Opinions

Transaction Opinions

New York

+1 212 871 0241 David Lee

David Rowe

Managing Director, Transaction Opinions

Chicago

+1 312 697 4520 David Rowe

+1 312 697 4655 Jeff Schiedemeyer

+1 312 697 4642 David Turf

Linas Cicenas

Director, Transaction Opinions

Los Angeles

+1 424 249 1694 Linas Cicenas

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