[INFOGRAPHIC] - Insolvent acquisition in retail

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THE OPPORTUNITIES & RISKS INSOLVENT ACQUISITION IN RETAIL INSOLVENT ACQUISITION IN RETAIL OF AN What are the top opportunities and risks for buyers looking to purchase insolvent retail companies? OPPORTUNITIES: RISKS: 3. Cherry-picking the businesses’ best assets without liabilities 4. Consolidating existing business in the sector 1. Cost effective market growth 6. Acquiring direct competitors 5. Developing multi- channel offerings 2. The diversification of brands #DLAPiperFashion 4. Time is of the essence A distressed acquisition will normally be completed in 1-2 weeks 5. Cash is king Administrators favour those with ready funds 2. Due diligence Understanding the business with limited time and information 1. Non-transferrable assets Ascertaining the value of assets such as IP and operating licenses, as these may be non-transferable 3. Warranty / indemnity protection Administrators are not expected to provide any warranties or indemnity protection

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What are the top opportunities and risks for buyers looking to purchase insolvent retail companies.

Transcript of [INFOGRAPHIC] - Insolvent acquisition in retail

Page 1: [INFOGRAPHIC] - Insolvent acquisition in retail

THE OPPORTUNITIES & RISKS

INSOLVENT ACQUISITION IN RETAILINSOLVENT ACQUISITION IN RETAIL

OF AN

What are the top opportunities and risks for buyers looking to purchaseinsolvent retail companies?

OPPORTUNITIES:

RISKS:

3. Cherry-picking the businesses’best assets without liabilities

4. Consolidating existingbusiness in the sector

1. Cost effectivemarket growth

6. Acquiring directcompetitors

5. Developing multi-channel offerings

2. The diversificationof brands

#DLAPiperFashion

4. Time is of the essenceA distressed acquisition willnormally be completed in1-2 weeks

5. Cash is king Administrators favour those with ready funds

2. Due diligence Understanding the business with limited time and information

1. Non-transferrable assets Ascertaining the value of assets such as IP and operating licenses, as these may be non-transferable

3. Warranty / indemnity protection Administrators are not expected to provide any warranties or indemnity protection