In distressed M&A deals, it is vitally important to retain knowledgeable and experienced counsel. With five partners and over 20 associates, we are one of the largest corporate teams on the Brussels legal market,, providing us with an unparalleled degree of manpower and expertise in managing complex transactions.
Distressed M&A transactions involve the acquisition of a group, business, or asset experiencing financial difficulties, usually involving debt, high illiquidity, or (close to) insolvency situations. These deals differ from “classic” M&A transactions in that the latter do not feature the same level of financial risk or urgency.
Oftentimes buyers must make decisions in a less “controlled” environment than would be optimal under normal circumstances, and with a higher exposure to contingent liabilities. If any, efforts at due diligence tend to be condensed or rushed, warranties limited (with the seller sometimes finding themselves unable to honor these agreements due to their precarious financial situation), and project deadlines shortened.
Third parties such as judicial appointees or creditors/suppliers also often play an outsized role in these processes, with the potential to significantly impact a deal’s feasibility or terms.
As a result of these complications and financial risk, distressed M&A deals require particularly experienced teams. Skillfully anticipating and addressing these specific issues in a deal oriented manner facilitates smoother transactions, allowing buyers to mitigate areas of vulnerability and maximize opportunities.
We not only assist clients on the corporate and transactional aspects of distressed M&A deals, but also on their employment, insolvency, regulatory and tax ramifications.
Our Relevant Experience
Assisting the pan-European (PE) firm Argos Wityu in their majority investment in the Lineas Group, the former state-owned rail freight forwarder active across Western Europe
Assisting Brussels Airlines in its recapitalization in response to setbacks caused by the COVID-19 pandemic