IBA: Lessons from restructuring distressed businesses

Author: Amélie Labbé | Published: 28 Sep 2016

Restructuring troubled divisions must be done in a structured and responsible manner to avoid future problems, according to panellists at last week's IBA Annual Conference in Washington DC.

"Both the sell and buy-sides need to do their homework properly," said session chair Ralf Morshäuser, of Gleiss Lutz in Germany. "You need to take care of all risks and challenges posed by the restructuring of that business."

According to the American Bankruptcy Institute, total bankruptcy filings in 2015 were 10% lower than in 2014, continuing the downward trend seen in recent years. That’s in spite of troubled global macroeconomic and financial conditions putting more and more pressure on businesses.

This means companies are exploring other options to take care of distressed assets, subsidiaries or divisions. However,...