Distressed asset sales: a best practice guide

Author: Ashley Lee | Published: 8 Oct 2013
  • Structuring and legal considerations are obviously integral to completing successful M&A deals involving distressed assets;
  • But the biggest issue may be that of timing;
  • Denial on the company’s side is common, however;
  • Regardless, investors in the competitive distressed M&A space are looking for assets earlier;
  • Defensive acquisitions have also become common, with ever more existing operating entities buying troubled smaller players in so-called 'buy it to kill it’ deals.

Although structuring and legal considerations are obviously integral to completing successful M&A deals involving distressed assets, the biggest issue might be that of timing.

Lawyer speaking at this week’s 2013 IBA annual conference agreed that companies must begin considering a distressed sale or restructuring at an early stage.

But denial on the company’s side is common, and not only from the company’s executives but also from its advisors – including its lawyers. By the time the...