Prairie utilizes its deep valuation and transaction advisory expertise to provide solvency opinions to board of directors, special committees, trustees, lending institutions and private equity sponsors. Our opinions can help fiduciaries understand the impacts of a highly leveraged transaction and avoid claims of fraudulent conveyance or other illegal transactions.
Does the fair value of the company assets (including intangible assets) exceed its fair value of current and contingent liabilities after the proposed transaction?
Can the company meet its debt obligations as they become absolute and mature after the proposed transaction? This analysis should include “stress” tests to determine impacts of a business downturn
Does the company have an unreasonably small amount of capital for the business after the proposed transaction? Can the company meet its operating expense, capital expenditure, and debt obligations?