Dynamic economic conditions can have an impact on a borrower’s ability to pay back debt. If conditions change and a borrower’s debts become greater than the fair value of its property, it could send a company and its unsecured and other creditors into financial distress.
A solvency opinion provides an independent assessment of a borrower’s ability to service its debt and helps interested parties understand the impact of incremental debt on working capital, cash flow and equity value. CBIZ’s national Solvency Opinion Practice can render the independent opinions on which your company, its Board of Directors, creditors, equity sponsors and other financial advisors can rely.
Our experience helps establish the lender’s trust with regards to the newly issued debt, provides due diligence and evidence of good faith, mitigates the risk of bankruptcy during complex transactions and enhances shareholder value by ensuring buyouts, recapitalizations and restructures are not overleveraged. We can also help companies optimize their capital structures through debt refinancing arrangements that are at lower cost than equity while also providing companies with tax advantages.
Discover how our expertise can assist you with your complex transactions.
- Leveraged buyouts
- Dividend recapitalizations and other leveraged dividends
- Debt Refinancings
- Related party and intercompany transfers
- Spin-offs, split-offs and share buy-backs
- Other such situations where there may be minimal equity involved