distressed asset acquisition

Distressed asset acquisition involves purchasing assets—like properties, businesses, or investments—that are struggling financially or imminently at risk of failure. Investors buy these assets often at a discounted price, aiming to turn them around or benefit from their eventual recovery or sale. This approach requires careful analysis of the asset’s true value, potential liabilities, and risk factors, as the seller may be eager to liquidate quickly to reduce losses. It's a strategic move that can yield high returns if managed well, but also carries significant risk due to the distressed condition of the assets involved.