Solvency Opinions
Cogent Valuation’s solvency opinions provide boards of directors, senior lenders and selling shareholders comfort that their transaction can withstand a fraudulent conveyance claim. 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.