Corporate Recovery Services
 

Imprimer Disposal of a distressed company before insolvency

Your challenges 

DisposalBeforeInsolvency.jpg

You are currently the company director/shareholder of:

  •  A distressed company
  •  A distressed group
  •  A distressed subsidiary within your group
  •  A distressed investment within your investment portfolio.

In a solvent context, and having assessed the challenges and risks linked to the various possible options, you have decided to dispose/associate your distressed company.

The key success factors of such an operation are as follows:

  •  Control of all parameters of the proceedings before putting the company on the market
  •  Preparation of information suited to the operation in question
  •  Ability to find acquirers capable of intervening in such a context
  •  Ability to steer the proceedings efficiently and optimally

Our solutions 

We offer to work with you throughout the disposal process by providing you with technical support at the following stages:

Disposal strategy

  • Defining the disposal perimeter: legal entities sold, percentage of capital sold, etc.
  • Risk analysis: "suspect" period, unusual intercompany links, etc.
  • Determining a schedule according to future cash tension
  • Level and type of information communicated: information memorandum, data room, vendor due diligence (VDD), etc. 
  • Type of disposal process: disposal by mutual agreement, auction, etc.

Preparation of information for acquirers (example of VDD)

  • Analysis of economic environment (market-competitors)
  • Presentation of company positioning and organisation
  • Cause of difficulties
  • Key assets: brands, patents, key people, equipment, contracts, information systems, etc.
  • Detailed analysis of historical financial statements (P&L, balance sheet and cash flow statement), as well as the impact of the economic environment or of past strategies on financial statements and economic environment
  • Company strengths and weaknesses
  • Assumptions of the turnaround plan
  • Preparation (or review) of projected monthly financial statements, using the assumptions of the turnaround plan and company strategy (P&L, balance sheet and cash flow statement)

Marketing

  • Identifying potential acquirers to contact (using our Accur'engine® database)
  • Contacting selected acquirers
  • Signing a confidentiality agreement and sending the information
  • Calling for non-binding offers (should the case arise)

Managing the bids

  • Assessing the non-binding offers (should the case arise)
  • Defining the strategy for negotiation and selecting the candidates
  • Accessing complementary information: Q&A, data room, interviews, etc.
  • Calling for final bids

Closing

  • Receiving and assessing final bids
  • Selecting the acquirer
  • Draft agreement, then final buy-side due diligence
  • Sale and Purchase Agreement

Imprimer | Remonter