Solvency Opinions
In transactions involving a significant use of financial leverage, corporate boards must ensure that a viable entity will exist following the transaction in order to avoid being subject to a claim of fraudulent conveyance. If a leveraged buyout or recapitalization ultimately fails, a solvency opinion can be a means to limit potential liability, as well as clearly document that the board exercised its fiduciary duty to shareholders.
Westlake's experience as an investment banking firm routinely involved in leveraged buyout and recapitalization transactions provides a basis for our ability to conduct the type of extensive financial modeling of business outcomes following these transactions which is required to provide a solvency opinion.
