Distressed M&A transactions. Distressed financing.

 

Advice for business continuity

There are many reasons why a company may find itself in financial difficulties: drops in sales, overindebtedness, the failure of a project or lack of access to traditional financing sources being some of the commonest causes.

At AGM Abogados we carry out an exhaustive analysis of the source of the problem and give a wide range of options enabling the entrepreneur to choose the best one according to his needs. After the client has chosen the most appropriate formula, we advise and support our client throughout the process from the beginning to the end.

 

Our services include:

 

  • Knowledge of the company’s operation.
  • Identifying the source of the difficulty.
  • Identifying and assessing risks.
  • Considering a strategy for achieving the objective planned.
  • Alternative approaches in the event of any deviations during the process.

How can we help your company?

We study the best business recovery plan, subsidiary company, branch office and brand, enabling the entrepreneur to choose the best one according to his needs.

 

Thus, our wide and varied experience enables us to give advice on the establishment of different capital structures, the search for specialised financing, the search for investors by means of different formulas (participation in the capital or equity, profit participation loans, bridging loans, joint ventures, etc.) and the search for investment funds specialising in the purchase of companies in distress situations.

 

We also give advice to companies, particularly investment funds, in identifying companies with potential, in spite of finding themselves in insolvency or bankruptcy situations and we provide support for instrumenting the best way of acquiring these or investing in them.

 

We have lengthy experience in buying companies in a commercial bankruptcy situation, either by means of buying shares or equity interest or by buying the production unit, conceiving the best strategy for purchasing these in any stage of the process (pre-bankruptcy, common stage, agreement or liquidation).

Our legal advice on Distressed M&A includes

  • Delimit the scope.
  • Prepare the due diligence process.
  • Prepare and submit bids for business units in the bankruptcy stage and negotiate them with the Insolvency Practitioner.
  • Search for specialist financing for this type of situation and accompany our clients throughout the negotiations for the agreement’s terms and conditions.
  • Implementing a strategy comprising all civil, employment and tax issues.
  • Poorly performing businesses or subsidiaries which do not fit in with the group’s structure.
  • Alternatives to business closures such as specialised sales through debt restructuring.
  • Acquisition of business units when growth can be attained by acquiring businesses in distressed situations implying the purchase and restructuring of debt in the same transaction.

 

In such cases, we seek financing alternatives for clients so that they can obtain this in difficult situations, and we collaborate with funds specialising in purchases and sales in the bankruptcy stage.

 

We restructure debt and allow new investors to enter so that they can maintain or bring out the shareholder value at companies with high debt levels.

Our team of Crisis management and business continuity

Vanessa Gañán Rincón

Civil

Can we help you?

Contact us

Articles

Julio Menchaca Vite, M&A lawyer. AGM Abogados   The acquisition of production units (PU), defined by article 149.4 of the Insolvency Act 22/2003 (IA) as “a set of means organized for......

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