Distressed M&A in times of high restructuring requirements — property-based financing of the purchase price

Compa­nies with an affi­nity for risk can curr­ently acce­le­rate their further deve­lo­p­ment in many cases by acqui­ring compa­nies as part of a distres­sed M&A process. Howe­ver, finan­cing the purchase price via bank loans is often diffi­cult. Object-based approa­ches can be used to take over a company in crisis. These are effec­tive almost irre­spec­tive of credit­wort­hi­ness and are possi­ble at short notice. 

In the current econo­mic situa­tion, corpo­rate buyers have nume­rous oppor­tu­ni­ties to take over distres­sed compa­nies at good condi­ti­ons via the distres­sed M&A process. Follo­wing the decline in M&A acti­vity in 2023 and early 20241 , the market has since seen a signi­fi­cant increase in deals. High inte­rest rates, poli­ti­cal uncer­tainty and the fluc­tua­ting global economy have recently dampened the M&A market. Accor­ding to the 2024 mid-year update of the M&A Indus­try Trends published by consul­ting firm PwC, the number of tran­sac­tions in Europe, the Middle East and Africa remained stable compared to 2023.