What do companies need to consider when they’re going to purchase an asset or business, specifically a distressed one?
Service and supply companies that are distressed and struggling to survive provide opportunities for companies in better financial positions. Purchasing assets or businesses now helps those companies to be positioned for more growth when the uptick comes. Before proceeding with an offer, distressed purchases must be thoroughly evaluated. In this article, we examine what companies need to consider when they’re going to purchase an asset or business.
What makes a “good” distressed purchase?
1. Evaluate the real underlying performance of the asset or business to be purchased
2. Make sure you have up-to-date information
3. Look for the upside
4. Seek out other benefits
Ready to talk? KPMG’s Deal Advisory team can counsel you through the multiple options available to maintain or grow your business in a cyclical industry. Our forward-looking specialists have business acumen, deep sector knowledge and technical know-how to help you stay ahead of the issues and make the best decisions to meet your goals.