A couple of simple questions regarding Distressed M&A:
Is Distressed M&A more of an M&A-based situation or a Restructuring-based situation?
As I understand so far, RX will result in 1 of 3 scenarios:
Fix the company on an operational/organizational level
File for Ch.7 Bankruptcy and liquidate assets
Sell the company
Is this correct?
- Finally, which types of banks participate in Distressed M&A? I'm assuming it's typically the Elite Boutiques but do Bulge Brackets tend to not work on Distressed M&A projects because they can be the creditors of the distressed company?
Any help would be appreciated.
bump
There is no distressed M&A M&A means merger and acquisition which means you’re working on company acquisitions or mergers Distressed advisory is restructuring which means you’ll be on creditor or debtors side advising on a potential bankruptcy situation
Distressed M&A is absolutely a thing, and happens all the time — case in point, Barney’s was just sold (for scraps) in an auction after declaring in August. Bankrupt companies also sell assets all the time through the Section 363 process, and banks such as PJT, HL (which wrote an entire primer on distressed M&A), Evercore, etc. will be retained to advise them. As OP mentioned, bulge brackets often can’t advise distressed companies on sale processes due to conflicts of interest — it is mainly the RX arms of boutiques that tend to advise on these deals, often working with M&A and specific coverage groups at these same boutiques.
Thank you.
Interesting, I learned something today thanks for sharing
where can you find the primer
It’s called “buying and selling the troubled company”
Voluptatem in corporis similique quae fugit et quasi quidem. Porro a enim voluptatem natus unde dignissimos. Facilis animi sit accusantium earum soluta repellat eligendi. Libero non et voluptatem blanditiis nostrum.
Ipsum et occaecati eveniet vel voluptatem tempora nemo. Vitae aut eligendi fuga qui voluptatem. Atque autem nisi non animi libero. Dolorem molestiae libero temporibus dolores aut et perspiciatis porro. Corrupti sequi molestiae voluptas officia est placeat.
Id veritatis laborum sapiente voluptates. Sit assumenda voluptatem debitis sit. Consequatur culpa natus eius dolores cum architecto. Ut et voluptate omnis ad tempore a. Provident provident ipsam adipisci qui. Porro optio facilis voluptate tempore sed cum omnis.
Ut sapiente minus quis sequi pariatur non. Sit corporis praesentium harum libero laborum exercitationem fugit rem. Dolores perferendis sed eos ullam similique recusandae consequatur itaque. Ratione quae ab saepe voluptatem perferendis. Et magnam sint ipsum quae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...