Selling or buying a financially challenged enterprise requires a unique set of skills and tools. Gowling WLG's distressed M&A professionals combine M&A, restructuring and insolvency strategies to preserve, extract and enhance the value trapped in a troubled business.
The distressed target is running out of cash. Management is putting out fires and dealing with angry stakeholders and predatory competitors. Customers and suppliers are looking for exits. No one trusts the information coming out of the business. Gowling WLG's Distressed M&A professionals act quickly to bring clarity and preserve the going concern value of the target enterprise.
Distressed businesses can be acquired at low multiples of EBITDA relative to historic pricing. If the buyer has the cash and skill to rationalize the business and survive the crisis, the acquisition of a troubled company can pay significant dividends as the target recovers.
How we can help
When received early, strategic advice can often diffuse hostile relationships between distressed companies, their creditors and equity holders. It can also help acquirers gain an early advantage over other bidders, as well as secure and protect critical suppliers and customers to ensure continued viability.
By combining insolvency and restructuring knowledge with our experience in healthy M&A processes, the Gowling WLG team can run a seamless distressed M&A transaction from start to finish.
To find out how we can support your distressed M&A needs, please contact any member of our team.