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Company acquisition after insolvency

 

Legal advice for M&A transactions

Acquiring a company that is insolvent or being restructured (distressed M&A) has its own laws. It is only comparable with acquiring a solvent company in a very limited way. This is especially the case if you consider the noticeably tighter timeframe in which the transaction generally has to be completed. M&A processes in insolvency proceedings do not last much longer than three months usually, and are often even shorter.

Insolvency administrators can only make limited amounts of meaningful data on this available. To complete the transaction successfully, it is necessary for an investor to have an adviser at their side who can identify and explain all important issues.

Our knowledge of insolvency-related situations often makes it possible for an investor to submit an offer that is better for the creditors than that of another third party, even without offering a higher purchase price. We can put our team's knowledge gained from insolvency administration to use in company acquisitions.

When acquiring companies being restructured, our expertise means we can also assess how likely it is for the acquired company to recede into insolvency. When purchasing part of a company, we can assess whether the remaining part is able to survive or if it could be faced with legal challenges.