For more than 40 years, Great American has helped businesses like yours realize the true value of their assets. Our team of professionals will study the terms of your transaction, as well as any new or existing debt. We will look at the capital structure of your company, along with its historical and projected performance, considering all relevant industry data showing trends in growth rates, profitability, recent acquisitions, and more to ensure the proposed transaction is assessed accurately.
State laws impose fiduciary duties on boards of directors and corporate executives with respect to dividends, distributions, and other transfers that the company may undertake. The violation of one’s fiduciary duty may result in both criminal and civil penalties. The purpose of a solvency opinion is to communicate to fiduciaries, and other stakeholders, the solvency of the company assuming a proposed transaction is completed, thereby preventing fraudulent transfers and illegal dividends or distributions. In addition to mitigating legal and financial risks, solvency opinions provide an additional layer of due diligence related to a leveraged transaction, providing evidence of good faith on the part of the company and helping to establish trust between lender and borrower.