Special Situations M&A Advisory

As we emerge from COVID-19, expectations for an increase in corporate stress, distress and insolvent situations is high across all parts of the economy.

Special situations M&A Advisory

Our Special Situations M&A team work with businesses to assist them to navigate a sale or acquisition of a business due to circumstances including financial stress or distress, regulatory change or other circumstances which are driving a requirement to transact to protect value.

In these situations, a team of advisors that have seen similar situations before and have successfully delivered solutions at pace is a key factor in protecting value for shareholders, and where relevant, creditors. 

Often the quality of information and the time available to undertake a normal financial or commercial due diligence exercise is a challenge. At Interpath, we are experienced in determining value and structuring transactions with imperfect information. Our experience from working on both sides of such transactions means we are well versed in managing the key issues that need to be addressed to deliver a successful special situations transaction.

No special situations engagement is the same and each is driven by a dynamic range of factors, both internal and external. However, previous special situation projects include:

Distressed sell-side support: where a client is seeking to close a transaction in a compressed timetable of typically two to six weeks, and is typically facing significant liquidity constraints, often with the backdrop of potential insolvency.

Interpath provides expert advice to clients by deploying senior-led teams with a blend of Restructuring and Corporate Finance skills and experience to find and deliver creative solutions in challenging circumstances. Interpath’s ‘Early Options’ product has led the Special Situations M&A market for more than a decade, delivering transactable options for clients and stakeholders.

Distressed buy-side support: where a client is seeking to acquire a competitor, supplier or customer which is facing financial distress or stress, often with the backdrop of potential insolvency.

We help clients assess the value of emerging opportunities, manage their risks during the acquisition process and deploy effective commercial negotiating tactics. We also assist many of our clients in maximising value from their acquisition post-deal with turnaround planning and implementation strategies designed to address the failures that led to the targets’ vulnerability pre-deal.

Non-core disposal or carve-out: where a client is looking to offload a non-core asset to help drive shareholder value and release funds to refocus the business to deliver more sustainable growth.

Unlocking maximum value from these opportunities is often challenging given the level of integration within the core business. Interpath supports clients through the sale process to protect, preserve and maximise value.

Discreet or managed exit: where shareholders and management teams are seeking to dispose of difficult assets.

A managed exit involves careful structuring of the transaction and project managing the M&A process over the period necessary to maximise value from the underperforming asset, typically over 3 to 6 months. We take a practical, data-backed approach that helps ensure value is maximised whilst minimising ongoing implications for remaining assets or business units.