Distressed M&A

With around 29,500 company insolvencies a year, the restructuring of companies also remains an important topic after the global financial crisis. The sale of assets is often the first step of a restructuring process and at the same time represents an important restructuring tool.
As legal, fiscal and financial problems have to be solved for the purchase of companies which are in crisis, the expertise of experienced advisers from various specialist fields is required for a successful transaction.

The time factor is also important from two perspectives. On the one hand, the time of acquisition is important for determining the liability for existing debts, while on the other hand the purchase of an insolvent company is carried out under greater time pressure than that of an economically healthy company. A long transaction process might prove an obstacle to the restructuring target: The reputation of the company may suffer, there may be a threat of losing customers and suppliers, important employees might leave the company.

You can select from the following optional solutions:

  • Share deal, share purchase if the value of the company consists of intangible assets
  • Asset deal, sale of the assets without taking over existing debts
  • Debt conversion by exchanging creditors' claims against the business shares of the company which is insolvent or in crisis (debt-equity swap)

The advantages to you are a less intensive due diligence process, better restructuring chances and an improvement in the chances of liquidating the insolvency estate. There is no basis for liability with respect to existing debts or tax liabilities through continuation of the firm.

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Restructuring

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