Foxboro Consulting Group, Inc. (“FCGI”) leverages its independent status to provide reliable Solvency Opinion Services. Our experts help companies, boards, and stakeholders assess financial stability during mergers, acquisitions, sales, or refinancing.

Why Solvency Opinions Matter

Corporate transactions are closely reviewed by lenders, stockholders, regulators, and the IRS. A professional, independent solvency opinion confirms that a company remains solvent after a corporate transaction. It also protects directors, advisors, and secured lenders in case of future bankruptcy or fraudulent conveyance claims.

Dividend Distribution and Solvency Tests

Many boards require a Dividend Distribution Test to ensure that proposed distributions are not out of stated capital. FCGI’s consultants verify that company assets, minus liabilities, exceed the proposed distribution and stated capital. Depending on state requirements, this test may be sufficient, or all three solvency tests may be applied:

1. Balance Sheet Test: Company assets’ fair value exceeds stated and contingent liabilities.
2. Cash Flow Test: The company can meet all debts as they mature.
3. Reasonable Capital Test: Remaining capital is appropriate for the business’s operations.

Our Expertise

FCGI professionals have developed and applied industry-standard methods for solvency analysis. Our structured approach ensures accuracy, compliance, and defensible results for stakeholders and regulatory authorities.