Distressed M&A

Sympheron combines the experience of its M&A and restructuring professionals in advising either buyers or sellers of distressed assets and/or companies. Sympheron is able to advise a client throughout the entire process, including identification of targets/buyers, participation in a sales process and court proceedings, if necessary. We look to identify creative tactical or strategic solutions to unlock value in every situation. We recognize that executing M&A in distressed situations requires incremental skills that are not always required within traditional M&A transactions. Some of these skills are working with a highly levered acquiror or target, managing the bankruptcy process, performing a valuation that can withstand court scrutiny and managing inherent conflicts of interest among different constituencies.

Distressed M&A candidates typically face many of the following challenges:

  • Declining operating performance and cash flow
  • Rapidly changing industry conditions
  • Potential loss of key management
  • Stretched payables
  • Total debt exceeding enterprise value
  • Significant liquidity constraints
  • Covenant and/or payment defaults on debt instruments
  • Conflicts between the various constituents that hold competing claims or interests
  • Senior lenders restricting access to capital
  • Limited access to new capital
  • Commencement or threat of bankruptcy proceedings

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