Posts Tagged ‘stalking horse’
How Do You Buy Assets From a Bankrupt Company?
by Scott Edward Walker on November 17th, 2010Introduction
This post was originally part of my “Ask the Attorney” series which I am writing for VentureBeat (one of my favorite websites for entrepreneurs). Below is a longer, more comprehensive version. Please shoot me any questions you may have in the comments section – or feel free to call me directly at 415-979-9998. Many thanks, Scott
Buying a Distressed Business: Ten Tips For Entrepreneurs
by Scott Edward Walker on October 19th, 2009I remember post-“9/11” working at a major law firm in New York City and watching all of the transactions on my plate fall apart. Indeed, then (like now), as credit dried-up, the M&A pendulum swung to the acquisition of distressed (i.e., financially-troubled) companies; however, as I learned first-hand, acquiring a distressed company raises a host of significant risks and potential problems that are not typically found in the acquisition of a healthy, solvent company (which I recently discussed here). Below are ten tips for entrepreneurs who are looking to get into the distressed M&A game. They relate to two different contexts: (i) prior to (or absent) a distressed target’s Chapter 11 filing — i.e., the non-bankruptcy context; and (ii) after a distressed target’s Chapter 11 filing — i.e., the bankruptcy context. (more…)