Insights in the Corporate Restructuring stream.
A distressed sale is a different transaction from a normal M&A. The buyer's psychology, the due diligence compression, and the value drivers all shift. What buyers look for, and what sellers can do to command better terms.
A board's role during a corporate restructuring is different from its role in ordinary times. Faster decisions, tighter information flows, and directors willing to take positions on matters that would normally be left to management. The disciplines that make the difference.
The mechanics of ranking one creditor behind another are not glamorous. Subordination agreements are what allow multi-layered restructures to close, and the terms hidden in the drafting are where deals fail during execution.
Every distressed company reaches for one or both of two levers. Operational turnaround fixes the business; financial restructuring fixes the balance sheet. Knowing which is primary changes the sequence, the counterparties, and the outcome.
A distressed but solvent company can be restructured or sold. Boards under pressure often reach for the sale because it looks decisive. The math sometimes says the restructure returns more to shareholders. When to reach for which.
Corporate restructuring is what solvent companies do to stay ahead of trouble. Business rescue is what happens after trouble has landed. Confusing the two costs boards options they did not know they had.