18/09/2018 Distressed M&A
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.
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 advice includes the following:
- The presentation of offers and the establishment of synergies with the Commercial court and Bankruptcy Administration in charge of the process.
- Negotiating with financial and non-financial creditors.
- Implementing a strategy comprising all civil, employment and tax issues.