Glossary · Deal process
Distressed M&A
Also called distressed sale, distressed deal
Definition
Distressed M&A is the sale of a company, or its assets, when it is in financial difficulty, sometimes through an insolvency procedure. Timelines are short, information is patchy and sellers or administrators give few warranties, so buyers rely on fast due diligence and price in the risk.
Where distressed M&A comes up
On this site, in our guides and in the conversations we've written up.
Related terms
Carve-out The sale of a division or business unit that has to be separated from its parent company. Asset purchase agreement The contract for buying selected assets and liabilities of a business, instead of its shares. Binding offer A buyer's final offer after due diligence, usually with a marked-up purchase agreement attached. Bolt-on acquisition A smaller company bought to add to an existing platform business, common in private equity. Buy-side The buyer's side of a deal: the acquirer or investor, and the advisers who help them find, check and price a target. Clean team A small, ring-fenced group allowed to see a competitor's sensitive data during a deal, under strict rules. Corporate development The in-house team that finds, runs and integrates a company's acquisitions and partnerships. Exclusivity period A set time in which the seller agrees to negotiate with one buyer only.