The distress situation is often a result of unviable scale of operations or inefficient management. Further economic slowdown and credit crises may at times undermine the capacity of a sick company to recapitalize or refinance its debt. Sick companies and Distressed Assets on the other hand provide a significant value proposition for strategic acquisition by stronger industry players and distress investors.
Strategizing a distress acquisition is often more complex as the acquisition strategy involves several components of capital structure viz. senior and subordinate debt, mezzanine instruments and equity in contrast to other transactions where equity alone has the deciding role. Further the process is accentuated by claims of multilateral statutory bodies and numerous recovery litigations.
RCA team leverages on its expertise in stressed assets and investments banking, on sell side for assisting clients in preserving and maximising the value and on buy side for assisting clients in scouting, understanding and capitalizing on distress opportunities. Distressed Asset Sale and M & A Services include:
- Valuation of Businesses, Group of Assets and Stand Alone Assets
- Setting up Sale Process, Market Making, Data Room Management, and Bid Evaluation
- Identifying Acquisition Opportunities & Evaluating Value Proposition and Capital Structure for advising on Acquisition Strategy
- Due Diligence, Negotiation and Transaction Structuring