Appraisal Economics Inc. has completed a valuation of one of the largest optical retailers in the United States. We were engaged to provide a solvency opinion to the company’s Board of Directors in connection with a $325 million refinancing, recapitalization, and issuance of a dividend. Our solvency analysis involves performing a business enterprise valuation, sensitivity analysis, and the five tests of solvency. The five tests of solvency include determining whether (i) the afair market value of the assets are greater than total liabilities, (ii) the present saleable value of assets are greater than total liabilities, (iii) ability to pay liabilities as they mature or otherwise become due, (iv) the capital remaining in the business (post-transaction) is adequate for the business operations, and (v) sufficient surplus is remaining to issue a dividend under Delaware law.

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