There are significant appealing factors in investing in distressed companies, both specific, e.g. convenient evaluations and specific product/customers opportunities as well as general ones resulting from restructuring procedures: e.g. large reduction of debts, asset structure improvement, new management.
There are also a large variety of potential investors: industrial strategic buyers, principally competitors; key creditors, secured and unsecured, institutional funds, such as P.E. funds, hedge funds and long only funds etc. and family offices.
At ERS we are able to play an effective and often unique role in our respective countries for distressed M&A because of: (a) easy access to companies operating in the same sector as the target company, directly or indirectly via connected financial intermediaries; (b) in depth knowledge of companies aiming for a growth strategy by foreign acquisitions; (c) relationships with distressed institutional investors. Furthermore, the combined assignment of restructuring and M&A sell side duties offers clients a very focused approach and economies on professional fees.