Distressed M&A: corporate transactions in special situations
Corporate transactions pose particular challenges, especially in crisis and special situations: High time pressure, complexity, low transparency! These are all common characteristics of typical distressed M&A situations and require a high degree of professionalism, expertise and process reliability.
We advise and support companies, shareholders, insolvency administrators, creditor representatives and other stakeholders such as banks and financiers in the successful implementation of distressed M&A processes - both on the seller and the buyer side. We support you as a traditional M&A advisor as well as a project manager with overall responsibility for interdisciplinary teams, for example in conjunction with our colleagues from auditing, tax and legal advice.
In addition, we support companies in the carve-out and sale of companies or parts of companies (underperforming assets / carve-outs) in special and crisis situations. This is often done in order to ‘cut off’ loss-makers or to generate the necessary liquidity contributions for corporate financing.
We combine our extensive M&A experience with financial and performance management expertise from restructuring and reorganisation situations to create a customised and integrated approach. We stand for the implementation of professional M&A processes, both in structured bidding procedures (auctions) and in bilateral negotiation situations.
In insolvency proceedings, we organise transaction processes in the classic form of ‘transferring restructuring’ as an asset deal as well as in insolvency plan solutions in the form of a share deal. In order to maximise the creditors' results, we also proceed in an open-ended dual-track procedure.
With our global RSM network, we provide the necessary access to international investors and interested parties.
The following critical success factors exist in the context of a distressed M&A:
- Ambitious and challenging timetable against the backdrop of crisis-related parameters such as liquidity, customer or supplier relationships, difficult market developments
- Lack of transparency or reduced resilience of company forecasts and planning with regard to short and medium-term business development
- Liability-related risks for managing directors, e.g. with regard to delaying insolvency or liability from (privately secured) guarantees
- Interdisciplinary understanding of business, legal and tax issues in increasingly complex corporate crises