Solvency Opinions – An affirmative determination of post-transaction solvency involves a set of analyses that are unique to this type of opinion. There are but a handful of firms that have significant expertise in the nuances of solvency. Cogent Valuation’s Managing Directors are among the most experienced solvency opinion providers in the country, having been involved in their issuance in high profile transactions since the mid-1980’s.
Prior to issuing a solvency opinion, Cogent Valuation performs a comprehensive assessment of the company’s ability to satisfy the specific tests of post-transaction solvency. This includes a valuation of assets and liabilities, a thorough review of the debt terms, a modeling of the company’s ability to generate sufficient cash flows to meet its debt obligations under potentially adverse business conditions, and an assessment of the adequacy of the company’s post-transaction capital. Cogent Valuation’s solvency opinions provide boards of directors, senior lenders and selling shareholders comfort that their transaction can withstand a fraudulent conveyance claim.