Distressed M&A

Distressed M&As involve the acquisition of struggling companies at discounted prices and their subsequent revival through strategic integration, financial restructuring, and operational enhancements.

The problem

Companies often encounter financial distress when they can’t meet current liabilities or face the risk of impending insolvency without external help. At this stage, the company’s position has eroded so severely that stakeholders must act swiftly to preserve value.

These situations demand a condensed sale process, fuelled by urgency and leaving little room for prolonged negotiations. Both sellers and buyers face heightened risks: sellers must move quickly within a tight window to stem further value loss, while buyers can snag assets at attractive bargains but must contend with hidden liabilities and incomplete information.

Our solution

Eight International empowers bidders to seize complex yet lucrative opportunities to acquire quality assets at attractive valuations while helping distressed sellers expedite asset liquidation and loss mitigation.

For underperforming asset sales or acquisitions, we deploy targeted legal, operational, and financial techniques. Working closely with buyers or sellers, we anticipate challenges well upstream of the transaction:

  • As part of our seller support (asset disposal), we intervene upstream of the transaction to provide vendor assistance, Q&As with potential buyers, and assess restructuring and turnaround financing needs.
  • As part of our buyer support (asset recovery), we conduct acquisition due diligence, handle net debt adjustments, and assess total cash needs, including acquisition price and turnaround financing.

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