There is a need to quickly divest of an underperforming or non-core business unit or subsidiary through a controlled sales process.
Management requires support and assistance with a disposal or an acquisition of a stressed or distressed business, possibly through a formal insolvency process.
How we can help
In circumstances in which a sale of your business or group of assets appears to offer a suitable exit but is required on an accelerated time frame, we work with you to execute a transaction. On the sell side, our accelerated disposals services include:
Integrated sell-side due diligence investigation, including assessing the reasons for underperformance and unique selling points of the business
Forecasting and cash management advice to identify and address critical cash flow constraints that can affect the time frame for the sale process
Project management of the sale process and marketing of the business in an accelerated time frame
Assistance with deal structuring and negotiations with potential buyers
Assistance developing contingency plans to limit the risk of value erosion if factors arise that destabilize the sale process or the process fails
Acquiring a business out of insolvency may be unfamiliar territory for management. Our insight can help you navigate potential challenges and pitfalls that may arise during the sale process. On the buy side, our accelerated acquisitions services include:
Integrated due diligence investigation, including identifying and evaluating key risk areas and reasons for distress or insolvency
Assessment of the distressed target’s current financial situation (e.g., assigned to the lender’s workout group, in a formal insolvency process) and the impact of the situation on a potential transaction
Advice on transaction structures, so that risks are reduced and only assets or parts of the business that are necessary for your purposes are acquired
The potential benefits
Distressed companies may be able to realize additional value from the sale of an underperforming business unit or subsidiary.
Early identification of potential issues and our familiarity and experience of the nuances of distressed M&A transactions can help you accelerate the sale process while providing the opportunity to minimize value erosion caused by distress.
Complete understanding of the context and process in which distressed businesses are available for sale can help you anticipate, avoid or manage the associated risks.