PRIVATE EQUITY SERVICES
PRIVATE EQUITY SERVICES
our opinions services and valuations are relied upon for a variety of purposes including:
- Mergers & Acquisitions
- Debt & Equity Financing
- Corporate Restructuring
- Stock & Asset Ownership Transfers
- Regulatory Reporting
Since 1988, CVA has proudly served small & middle market businesses, Fortune 500 companies, lending institutions and private equity firms. CVA’s financial team has been trusted by leaders, BOD’s, and BOD committees of major corporations and private equity firms to provide independent opinions in connection with various financial transactions.
CVA has provided fairness, solvency, and capital adequacy opinions in various transaction settings including recapitalizations, mergers and dividends/distributions:
- Fairness Opinions, Solvency Opinions and Capital Surplus Opinions.
- Experienced in preparing opinions for transactions ranging from a few million dollars to multi-billion dollars.
- Provide boards of directors with an independent review as to the financial fairness of a potential transaction.
- Solvency and surplus opinions provided to boards of directors and lenders to supplement their due diligence in leveraged transactions, stock redemptions and dividend distributions.
A fairness opinion is an expert opinion & analysis that supports the financial fairness of a transaction whether the terms of a merger, acquisition, buyback, spin-off, or privatization are fair from a financial point of view to certain parties involved in the transaction. Fairness opinions function to aid in decision-making, risk mitigation and enhance communication.
Reasons for Fairness Opinions:
- Support minority shareholders position
Solvency & Capital Adequacy
A solvency & capital adequacy is an expert opinion that concludes a Company’s financial stability in a leveraged transaction. It answers the question of value as it pertains to such matters as the financial solvency of a company after giving effect to a stock redemption or the payment of a dividend or whether the company even has sufficient surplus under relevant state law to make the redemption or dividend payment.
Our Solvency & Capital Adequacy Opinions Consider:
- Whether the fair market value of the company’s assets exceeds and will exceed its total debts and liabilities.
- Whether the present fair salable value of the total assets exceeds and will exceed the total debts and liabilities.
- Whether the company would be able to pay its debts as they become absolute and mature.
- Whether the company’s remaining capital would be reasonable for the business in which it is engaged.
Purposes for Opinions:
- Debt Refinancing
- Divided Recapitalization
Quality of Earnings
The value of a business is largely based upon its ability to generate free cash flows. One-time events, financial anomalies, extraordinary income/expenses, external events may impact the financial statements. When financial statements do not identify these items, a buyer or seller may engage a firm to conduct a Quality of Earnings study. These studies help to identify any non-recurring income/expense items or pro forma adjustments allowing a buyer to have a clearer, independent perspective as to the historical earnings of the company.
Reasons for Quality of Earnings
- Identify non-recurring income and expenses.
- Pro forma historical financial events.
- Provide clarity as to a normalized level of historical earnings.