distressed investing strategies

Distressed investing involves purchasing securities of companies experiencing financial trouble or bankruptcy, often at a significant discount. Investors analyze these companies to determine if they can be salvaged or restructured profitably. The goal is to buy low, potentially influence recovery strategies, and eventually sell at a higher price if the company succeeds or its assets increase in value. This strategy requires careful assessment of risks, legal complexities, and understanding of bankruptcy processes, aiming for substantial returns from companies in distress while managing the high uncertainty involved.