Distressed M&A and investing
January 2015 | SPECIAL REPORT: DISTRESSED M&A AND INVESTING
Financier Worldwide Magazine
January 2015 Issue
Distressed M&A and investing has remained quite sluggish in recent years, due to persistently low interest rates, buoyant financing markets, a lack of restructuring activity, and the willingness of banks to ‘amend and extend’. That said, certain banks remain overleveraged and continue to offload distressed assets. In addition, the scarcity of opportunities is driving up interest for those assets that do come to market, fuelling competition among distressed players. Whatever the wider finance environment, distressed M&A and investment by its nature always involves a greater level of inherent risk. To manage these risks and drive returns, investors need accurate valuations to arrive at an appropriate price. They also need to conduct thorough due diligence, even with limited information and compressed timeframes. Finally, they need to obtain the highest level of legal protections available. Seasoned investors know the importance of a sound approach, while inexperienced players can easily rush the process, misjudge the market, and overpay.
FORUM: Outlook for distressed investing in 2015
FW moderates a discussion on the outlook for distressed investing in 2015 between Martin Gudgeon at Blackstone, Leif Zierz at KPMG, Louis Gargour at LNG Capital, and Jamie Constable at Rcapital Partners LLP...
Distressed debt investing – finding value and opportunities in a hot market
Executive Sounding Board Associates LLC Earlier in this decade the number of distressed deals significantly outpaced the funding sources – many deals chased fewer dollars. However, in the last couple of years those roles have significantly reversed. There is now more...
Mergers & acquisitions in a more uncertain world: using the Companies’ Creditors Arrangement Act
McCarthy Tetrault Perhaps the most useful, and commonly known, restructuring process available to insolvent entities in the United States is Chapter 11 of the US Bankruptcy Code. In Canada, however, there is more than one insolvency regime readily available...
Buying distressed companies in formal insolvency proceedings
Davies Ward Phillips & Vineberg LLP Purchasing a distressed business inside an insolvency proceeding has its own unique deal elements. If executed properly, however, such transactions can be quite valuable because often a distressed business can be purchased for much less...
Material adverse change clauses in insolvency proceedings
Hogan Lovells In this post-2008 economic meltdown era, it is difficult to picture a contract to a major transaction lacking a material adverse change (MAC) clause. These clauses have become the prime escape route for businessmen when deals start...
Evolution rather than revolution: reform of French insolvency proceedings
Willkie Farr & Gallagher LLP A reform of French insolvency proceedings was introduced on 12 March 2014 affecting all insolvency proceedings commencing after 1 July 2014 and delivering an overall positive effect for both creditors/third parties and debtors...
Kirkland & Ellis International LLP Since 2010, European borrowers have issued over €250bn in high yield bonds, according to S&P Capital IQ. One of the most typical European high yield capital structures that has emerged includes: (i) a super senior secured RCF accompanying...
Q&A: Valuation challenges in distressed situations
FW moderates a discussion on valuation challenges in distressed situations between Tony Loughran at Cushman & Wakefield, Cindy Ma at Houlihan Lokey, Jeremy Handley at JLL, and Gardner Dudley at Liquidity Services...
CONTRIBUTORS
Blackstone
Cushman & Wakefield
Davies Ward Phillips & Vineberg LLP
Executive Sounding Board Associates LLC
Hogan Lovells
Houlihan Lokey
JLL
Kirkland & Ellis International LLP
KPMG
Liquidity Services
LNG Capital
McCarthy Tetrault
Rcapital Partners LLP
Willkie Farr & Gallagher LLP