Distressed M&A

Creating opportunities for action. Overcoming crisis situations.

As the German market leader in distressed M&A transactions, we are committed to successfully organising and implementing corporate transactions in situations of upheaval and Crisis.

This involves assisting businesses and their shareholders with the sale of companies or crisis-stricken company units, as well as supporting insolvency administrators and creditor representatives with the implementation of structured M&A processes for placing insolvent companies on the market. We also advise investment companies on strategic divestments from low-margin portfolio companies.

Our work in insolvency proceedings is not exclusively focused on orchestrating transferred reorganisations (“classic” transfer solutions in asset deal situations) – we also organise recapitalisations as part of insolvency plan solutions, often in the context of debtor-in-possession management. When it comes to maximising value for creditors, both forms of action can be pursued and prepared for implementation at the same time without any fixed expectation for the outcome. This is known as a dual-track process.

On the buy side, we primarily provide efficient and effective guidance to international strategists and financial investors engaged in cross-border acquisitions of distressed companies in Germany.

Leading distressed M&A advisors in Germany.

League Table
Distressed M&A
Germany – Deal Count

Rank	Financial Advisor	2020	2019	2018	2017
1.	FalkenSteg	15	17	20	16
2.	PwC	12	8	1	1
3.	Restrukturierungspartner	8	7	11	5
4.	Saxenhammer & Co.	7	3	4	10
5.	Baker Tilly	6	1	–	–
6.	Roland Berger	6	2	2	6
7.	Allert & Co.	4	2	2	1
8.	IMAP	4	1	4	2
9.	Deloitte	3	2	–	1
10.	CVM	3	1	–	–

Source: Mergermarket
Financial advisor to either bidder or target/seller of announced transactions with insolvent German target companies. Deal value > EUR 5 million. When tied, rank follows cumulative deal value.

Distressed M&A - critical success factors

Challenges within distressed M&A processes.

Challenging time frames with finite and uncertain process parameters (liquidity, customer and supplier relationships, loan terms, etc.)
Business plans less capable of withstanding pressure, with negative impacts on marketability due to unclear projections about future business development
Emergence of liability-related risks for owners and managers, especially regarding delays in filing for insolvency or liability arising from (privately backed) guarantees
Interdisciplinary understanding of business, legal and property-specific issues in the event of company crises unfolding with increasing complexity

Distressed M&A expertise from FalkenSteg.

We organise structured M&A processes, taking into account all the relevant factors under crisis and insolvency law, meaning transaction reliability and returns can be maximised for all stakeholders
We identify vulnerabilities in the company’s business planning and effectively communicate realistic opportunities for sustainable post-crisis growth to potential investors
We ensure that our clients can feel confident in taking action by setting out transaction solutions that are workable and compliant with insolvency law and other legal requirements in complex crisis situations
We add value in a measurable way by utilising the operational restructuring expertise within our firm, resulting in sustainable improvements in transaction security and prospects for recovery