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”
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