Mergers & Acquisitions
Are you looking to acquire a distressed company or an insolvent company (Distressed M&A) ?
Acquiring a company in financial crisis or emerging from insolvency can present attractive opportunities but also entails specific risks. In order to avoid liability risks and ensure that the acquisition is strategically sound, distressed M&A transactions require swift action, detailed due diligence, and precise legal structuring.
Summary
How is a company in crisis that has not yet filed for insolvency taken over ?
Our lawyers specializing in M&A will help you assess opportunities and risks, as well as develop a secure transaction structure. In the event of imminent insolvency, a share deal is usually preferable to an asset deal, as the latter carries the risk of subsequent insolvency, which can result in the transfer of assets being contested. The general risks of a share deal, particularly the assumption of legacy liabilities, legal disputes, and liabilities, are significantly higher in crisis-stricken companies. This makes it all the more important to carefully carry out due diligence and, if necessary, agree on guarantees.
What are the advantages of purchasing a company out of insolvency ?
In the case of insolvent companies, takeovers usually take the form of asset deals. Under certain legal conditions, interested parties can acquire only the desired parts of the company while leaving behind its debts and undesirable assets. Our lawyers specializing in M&A can advise you on the legal possibilities of such a transaction.
What are the special features of distressed M&A transactions ?
Companies in financial difficulty often face considerable time pressure, which increases the risk of interested parties making hasty decisions. The company’s legal and economic situation must be analyzed quickly, so early legal advice is essential. Creditor interests, risks of contestation, and insolvency law requirements must be carefully examined. Our lawyers specializing in M&A will guide you through the entire process, helping you weigh the opportunities and risks.
You have any other questions ?
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