The Use of Financial Projections in Solvency Opinions

Business Valuation UpdateVol. 24 No. 6
June 2018
Craig A. Jacobson, MBA
bankruptcy, management projections, solvency, projections


Financial projections are often a key input to the financial models used to assess solvency, but projections prepared by management or its professional advisors are sometimes overly optimistic. Here’s how to identify whether projections are reasonable and to assess the level of risk.