[INFOGRAPHIC] - Insolvent acquisition in retail
-
Upload
dla-piper-llp -
Category
Law
-
view
198 -
download
2
description
Transcript of [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