Various different kinds of insolvency exist in literature and in practice. These include balance sheet insolvency, equitable insolvency and fair market value.
We not only analyse the consequences of balance sheet insolvency as part of a breakdown of financial statements but also define your insolvency status according to insolvency law.
As part of a two-stage solvency assessment, a review is conducted of the company’s potential to remain in business, something which in turn impacts on how assets are evaluated in order to define insolvency status.
Legally defined insolvency status provides argumentative aid against company management and shareholders as well as third parties.