Distressed sale

Find a buyer and sell its company: why anticipation is key ?


Distressed M&A refers to the sellout (or acquisition) businesses either in situations of losses or unable to meet short-term cash disbursements.
MBA Capital is efficient in this niche of distressed M&A and assists you in finding a buyer as selling a company in such a state is far from easy.

It may be the case of a subsidiary which benefits from cash inflows and which the group no longer wishes to support, even should this entail closing it down in last resort. Or a loss-making company, which still has some cash but insufficient to finance the road back to profitability. In these circumstances, MBA Capital recommends to anticipate to the maximum extent the sellout process – at lease 12 months – in order to be able to increase the opportunities to achieve a successful transaction.

It may also be a company no longer able to meet its short-term cash disbursements, filing for receivership. In this case, the cash horizon is generally less than  6 months, which requires an accelerated sellout process. MBA Capital has conducted several projects to success in such contexts, which remain nevertheless highly complex and uncertain as to the recovery of the business.

Distressed M&A : a unique expertise

The unique combination of distressed M&A and of the turnaround expertise of some partners, as CEO or operational advisor, enables MBA Capital to be relevant on these delicate matters.

These sellouts call upon specialist competencies, for instance to devise a pre-negotiated sellout (cession pré-pack in French Courts of Commerce).

At all events, MBA Capital, be it contacted by the shareholders, the public authorities (Region, Productive Recovery Commissar), the Court of Commerce designated experts or the banks, is committed to make its best effot in order to find solutions for a going concern and the preservation of employment.

  • Our strong recommendation : anticipate to the maximum extent the sellout process
  • Our unique combination of distressed M&A and of company turnarounds
  • Our specialist competency
  • Our commitment to make our best effort to find solutions for a going concern and the preservation of employment

MBA Capital is committed to maked its best effort in order to find solutions for a going concern and the preservation of employment.

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