To avoid being subject to fraudulent conveyance laws, a properly structured LBO should have a balance sheet that clearly indicates solvency at the time of closing.

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This statement is true. Solvency is an important factor in avoiding fraudulent conveyance claims, which can arise when a company is deemed to have transferred assets out of its ownership with the intent to defraud creditors. A balance sheet that demonstrates solvency at the time of an LBO closing can help protect against these claims.

To Avoid Being Subject to Fraudulent Conveyance Laws, a Properly