Many investors, including PE firms, are waiting with bated breath to see how the UK economy, currently dependent on COVID-19-related government support, will respond once that stimulus is withdrawn. An increase in UK company insolvencies is expected, creating opportunities for savvy investors to acquire businesses at bargain prices, while at the same time appearing to be white knights swooping in to save a beloved high street brand or large regional employer.
Buying from an insolvency officeholder, such as an administrator or liquidator, is significantly different from a solvent sale. Here we highlight the top ten things investors should look out for in a distressed sale.
1. Buyer Beware
PE investors are familiar with typical M&A sales…
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